Japanese manufacturer Toyo Solar announces 2 GW panel factory in U.S.

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Japan-headquartered solar manufacturer Toyo Solar announced it plans to open a 2 GW solar module manufacturing plant in the United States. The plan includes expansions to add cell and wafer manufacturing in the future.

The company said it plans to raise $100 million to support the factory. It expects a 70% return-on-investment in year one of full-scale production, based on Inflation Reduction Act incentives and expected profits. The IRA offers $12 per square meter of solar wafers, $0.04 per watt for solar cells, and $0.07 per watt for solar modules. Toyo Solar forecasts a $.60 per watt profit for a 1.4 GW production in the first twelve months of operation, leading to an $84 million return, based on a company presentation.

Toyo Solar’s stated roadmap includes:

  • Mid 2025 – Expect to commence production of U.S. solar modules
  • 1H 2026 – Expect to commence production of U.S. solar cells
  • TBD – Construction U.S. wafer slicing facility

“Toyo owns one of the largest, non-Chinese N-type cell manufacturing bases in the world,” said Toyo Solar. “For the first six months of 2024, 985 MW Toyo cells were utilized mainly to power U.S.-based projects.”

Toyo Solar manufactures Tunnel Oxide Passivated Contact (TOPCon) solar cell technology, the fastest growing solar technology worldwide. Its cells offer strong low-light performance, carrying a relative conversion efficiency of ≥ 97% under 200 W per meter squared of low light conditions. It has a high conversion efficiency of front efficiency greater than or equal to 25.3% and a bifacial efficiency of about 85% relative to the front face.

In the first six months of 2024, Toyo Solar achieved a 3 GW manufacturing capacity, shipped 986 MW of solar cells, and posted revenues of $138.1 million and net income of $19.6 million.

The company went public in the U.S. following the combination of Vietnam Sunergy Cell Co., a wholly-owned subsidiary of Toyo, and Blue World Acquisition Corp. It began manufacturing at its Vietnam facility in 2023 and has delivered 1.3 GW of solar cells to date.

Once mass production in the U.S facility commences, brand, credentials, and sales channels of VSUN in the U.S. will be integrated to the Toyo brand, said the company.

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