Trina Photo voltaic has bought its Texas photo voltaic panel manufacturing unit because the US scrutinizes Chinese language corporations cashing in on Inflation Discount Act tax breaks.
December 30, 2024: FREYR introduced on December 24 that it had closed its acquisition of Trina Photo voltaic’s 5-gigawatt (GW), 1.35 million-square-foot photo voltaic panel manufacturing unit in Wilmer, Texas. The acquisition finalizes FREYR’s transformation from a European battery firm right into a US photo voltaic firm.
November 8, 2024: FREYR, which was based in Norway and moved its headquarters to Georgia, paid $340 million for Trina’s manufacturing unit. Trina will retain a minority possession stake in FREYR, stories Bloomberg. The manufacturing unit is about to succeed in full manufacturing by 2025, with agency contracts already locking in 30% of its estimated output for US prospects.
The 2 corporations introduced the acquisition on November 6, the identical day that Kamala Harris conceded the US election to Donald Trump – and a mere week after Trina opened the manufacturing unit. On July 31, senators launched S.4873, a bipartisan invoice geared toward stopping Chinese language corporations from cashing in on US tax credit meant to spice up American photo voltaic manufacturing. Chinese language corporations are anticipated to face even tighter commerce restrictions beneath the Trump administration.
As Electrek reported in August 2023, Changzhou-headquartered Trina Photo voltaic was considered one of 5 Chinese language photo voltaic panel producers that acquired a US Division of Commerce (DOC) tariff slap as a result of the DOC dominated that the businesses had been dodging US tariffs on China-made items by processing parts in Southeast Asian nations earlier than transport their photo voltaic merchandise to the US.
Daniel Barcelo, FREYR’s newly appointed CEO, stated, “We’re proud to be partnered with Trina Photo voltaic, a worldwide manufacturing and photo voltaic expertise chief. Home manufacturing capability for photo voltaic and batteries is important for power transition and job creation.” Barcelo stated in an interview, in accordance with Bloomberg, that he feels assured that the newly acquired manufacturing unit will qualify for the IRA manufacturing tax credit score.
As Politico reported earlier this week in regards to the Inflation Discount Act’s 45X tax credit score:
The 45X tax credit score pays manufacturing unit house owners primarily based on every element that’s produced. A photo voltaic module, as an example, can obtain 7 cents a watt, or $70,000 per megawatt, although the fee will get smaller starting in 2029.
Trina’s 5,000-megawatt Texas manufacturing unit stands to obtain $1.775 billion from 2025 by 2032 if it operates at a 78% utilization fee, in accordance with Antoine Vagneur-Jones, head of commerce and provide chains at BloombergNEF. At a 60% utilization fee, Trina would web greater than $1 billion, he stated.
FREYR says its subsequent step is to construct a 5 GW photo voltaic cell manufacturing unit within the US, and website choice is already underway. The corporate plans to interrupt floor within the second quarter of 2025, aiming for preliminary manufacturing within the second half of 2026. The brand new US-owned and operated photo voltaic cell manufacturing unit will assist resolve a key bottleneck for builders, create as much as 1,800 direct jobs, and meet native content material necessities for US photo voltaic initiatives.
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