OCI Holdings, a prominent South Korean chemical company, has announced a significant investment in the United States. The company, through its US subsidiary Mission Solar Energy, plans to build a 2GW solar cell manufacturing plant in Texas, investing $265 million in the project.

The new facility will start with an initial rated capacity of 1GW. Commercial production for this initial phase is expected to begin in the first half of 2026, followed by a steady increase in output. By the second half of 2026, the plant is expected to reach its full annual production capacity of 2GW.

The decision to build the plant was influenced by a number of factors. OCI noted that Trump’s election led to the accelerated implementation of tariffs on China, which in turn increased market uncertainty. In response, the company saw an opportunity to improve its competitiveness in the US market by establishing a local solar cell manufacturing presence. In addition, the significant gap between solar cell and module production capacity in the US presented a lucrative market opportunity for domestic manufacturers.

A notable advantage of this project is the potential use of tax credits available under the Inflation Reduction Act. OCI emphasised that these tax incentives will play a critical role in financing the construction of the solar cell manufacturing facility.

OCI also highlighted its intention to create a clean solar supply chain. The US solar cell manufacturing project will use non-Chinese polysilicon produced by OCI TerraSus, another subsidiary of OCI Holdings (formerly known as OCIM). This strategic move is in line with the company’s vision of sustainable and reliable solar manufacturing.

According to Lee Woo-hyun, Chairman of OCI Holdings, the establishment of this new solar cell subsidiary is a significant milestone. It marks the start of US-based solar cell production, which will be manufactured within a clean supply chain using OCI TerraSus’ polysilicon. He went on to say that the project’s cost effectiveness and rapid progress will serve as a solid foundation for strengthening OCI’s position in the US solar value chain.

However, some details remain undisclosed. For example, the company has not revealed where the silicon ingots and wafers will be produced.

Current data shows that the planned solar cell production capacity will far exceed Mission Solar’s existing annual photovoltaic module production capacity of 500MW. In 2022, Mission Solar had already announced an expansion of its module production capacity to 1GW.

This excess solar cell production capacity is expected to have a positive impact on the US solar market. It will enable OCI Holdings to supply domestic solar cells to module manufacturers, effectively addressing the current capacity imbalance between solar cells and modules in the country. Currently, nominal annual module production capacity in the US exceeds 50GW, with more than 40GW either under construction or in the planning stages. In contrast, the operating solar cell production capacity is only 2GW.

In conclusion, OCI Holdings’ new solar cell factory in the US is a strategic investment that not only capitalises on market opportunities, but also contributes to the growth and stability of the US solar energy industry.