Chinese solar firm plans US factory in boon for Biden energy push
- Beijing-based JA Solar plans US factory in Phoenix, Arizona to allow US customers to access its products
- New plant will be able to produce 2GW of solar panels annually when fully operational in the fourth quarter this year: statement
A leading Chinese solar panel maker has leased space for its first US factory in another win for the Biden administration’s efforts to build up the nation’s clean energy manufacturing base.
JA Solar Technology will build a US$60 million panel plant in Phoenix with plans to be operational by the fourth quarter of this year, the company said in a press statement issued by the Arizona Commerce Authority.
The plant will be able to produce 2 gigawatts (GW) of panels a year once fully functional, it said. The US currently has 4.5GW of annual silicon panel production capacity, according to Bloomberg data, while several new projects have been announced recently.
Beijing-based JA Solar, the world’s fourth-biggest panel maker by capacity, is setting up the plant to provide US customers with flexibility and ease of access to its products, according to the statement.
Chinese solar manufacturers dominate global panel production, but have been stymied from shipping to the US because of a series of trade disputes and allegations of human rights abuses. Some of the firms have moved to expand exports from plants in Southeast Asia to navigate curbs on US trade.
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The US is trying to boost domestic clean energy manufacturing in its fight against climate change and to cut reliance on imported panels. President Joe Biden’s landmark climate law, the Inflation Reduction Act, which includes generous incentives for solar, battery and electric-vehicle manufacturing, has sparked a wave of new factory announcements, including a US$2.5 billion expansion of solar manufacturing in Georgia.
Biden’s policy extends to encouraging foreign firms – including China-based manufacturers – to set up facilities locally, which can support development of supply chains and create jobs.
