CHINA’S renewables giant Trina Solar has agreed to sell its US solar manufacturing operations amid increased American scrutiny of Chinese companies benefiting from clean energy tax incentives created under President Joe Biden’s signature climate law.
Georgia-based Freyr Battery will pay US$340 million for Trina’s new five-gigawatt solar panel assembly facility in Wilmer, Texas, and other manufacturing assets, the company said. Trina will retain a minority ownership stake in Freyr after the transaction closes, which is expected at the end of the year.
US lawmakers are intensifying concerns about Chinese-tied companies gaining from tax credits under the Inflation Reduction Act (IRA), especially the advanced manufacturing incentive that subsidises the production of solar panels, cells and other renewable energy technology. Even before Donald Trump’s presidential victory, bipartisan momentum was building in Washington to restrict that credit.
Freyr’s acquisition includes Trina’s 1.35 million-square-foot module manufacturing facility in Wilmer, Texas, that started production on Nov 1. Freyr, which will form a partnership with Trina, also plans to develop a five-gigawatt solar cell manufacturing facility with site selection underway.
Chief executive officer Daniel Barcelo said that he’s confident the factory will get the benefits of the IRA manufacturing tax credit. Freyr, which was founded in Norway, recently moved its headquarters to the US, he said.
“We think it’s good for US security to expand the supply chain for solar,” Barcelo said. BLOOMBERG
