First Solar Inaugurates $1.1 Billion Alabama Facility, Adds 3.5 GW of Vertically Integrated American Solar Manufacturing Capacity

Rhea-AI Summary

First Solar, Inc. (Nasdaq: FSLR) has inaugurated its new $1.1 billion fully vertically integrated thin-film solar manufacturing facility in Lawrence County, Alabama. The facility adds 3.5 gigawatts (GW) of solar manufacturing capacity in the United States and is expected to create over 800 new energy technology manufacturing jobs in the state.

This new facility, along with First Solar's three operating factories in Ohio, brings the company's domestic nameplate manufacturing capacity to nearly 11 GW and its global capacity to over 21 GW. First Solar is also constructing another $1.1 billion, 3.5 GW facility in Louisiana, expected to be commissioned in the second half of 2025. By the end of 2026, the company anticipates having over 14 GW of annual nameplate capacity in the US and 25 GW globally.

Positive

• Investment of $1.1 billion in new manufacturing facility
• Addition of 3.5 GW of solar manufacturing capacity in the US
• Creation of over 800 new energy technology manufacturing jobs
• Increase in domestic nameplate manufacturing capacity to nearly 11 GW
• Expansion of global capacity to over 21 GW
• Plans for additional 3.5 GW facility in Louisiana
• Projected increase to 14 GW annual nameplate capacity in the US by 2026
• Estimated support of 30,060 direct, indirect, and induced jobs across the country by 2026

Negative

• None.

Insights

Financial Analyst

First Solar's inauguration of the $1.1 billion Alabama facility marks a significant expansion of its U.S. manufacturing capacity. The addition of 3.5 GW of vertically integrated solar manufacturing capacity is a strategic move that strengthens the company's position in the domestic market. This investment, combined with existing Ohio facilities and the upcoming Louisiana plant, will boost First Solar's U.S. capacity to 14 GW by 2026, representing a substantial 27% of its projected 25 GW global capacity.

The facility's creation of over 800 jobs and the projected support of 30,060 direct, indirect and induced jobs nationwide by 2026 underscores the economic impact of First Solar's expansion. With an estimated $2.8 billion in annual labor income, this growth could significantly contribute to local and national economies. The company's unique position as a U.S.-headquartered manufacturer not operating in China may provide a competitive advantage in light of recent trade tensions and domestic production incentives.

Investors should note the potential for increased market share and revenue growth as First Solar capitalizes on the growing demand for renewable energy solutions in the U.S. The company's vertical integration and rapid production capabilities (four-hour turnaround from glass to panel) could lead to improved margins and operational efficiency, potentially boosting profitability in the long term.

Environmental Policy Expert

The inauguration of First Solar's Alabama facility represents a significant step towards enhancing U.S. energy independence and reducing reliance on foreign-made solar panels. This aligns with broader national goals to strengthen domestic clean energy supply chains and reduce carbon emissions. The facility's 3.5 GW capacity, combined with First Solar's other U.S. operations, will play a important role in scaling up American solar manufacturing.

The company's fully vertically integrated approach, from raw materials to finished panels, demonstrates a commitment to quality control and supply chain resilience. This is particularly noteworthy given recent global supply chain disruptions. The use of locally sourced materials, such as Alabama steel from within a 25-mile radius, further enhances the facility's sustainability profile and economic impact.

First Solar's expansion contributes to the diversification of the U.S. energy mix and supports the country's "all-of-the-above" energy strategy. This investment in solar manufacturing capacity is likely to accelerate the adoption of renewable energy, potentially leading to reduced energy costs and increased grid stability in the long term. The project's location in a rural county also highlights the potential for clean energy investments to drive economic development in diverse geographic areas.

New Lawrence County facility creates more than 800 energy technology manufacturing jobs

MONTGOMERY, Ala. & TEMPE, Ariz.--(BUSINESS WIRE)-- First Solar, Inc. (Nasdaq: FSLR) inaugurated its new $1.1 billion fully vertically integrated thin-film solar manufacturing facility in Lawrence County, Alabama. The facility, which adds 3.5 gigawatts (GW) of fully vertically integrated nameplate solar manufacturing capacity in the United States, is expected to create over 800 new energy technology manufacturing jobs in the state.

First Solar inaugurated its new $1.1 billion fully vertically integrated thin-film solar manufacturing facility in Lawrence County, Alabama. The facility, which adds 3.5 gigawatts (GW) of fully vertically integrated nameplate solar manufacturing capacity in the United States, is expected to create over 800 new energy technology manufacturing jobs in the state. (Photo: Business Wire)

“This represents a great day for First Solar and for Lawrence County because this production facility is destined to become a major player in the US renewable energy market,” said Alabama Governor Kay Ivey. “Moreover, the Alabama workers at this facility will help break the nation’s dependence on foreign-made solar panels and contribute to our energy independence.”

The Lawrence County facility along with First Solar’s three operating factories in Ohio brings the company’s domestic nameplate manufacturing capacity to almost 11 GW and its global capacity to over 21 GW, once fully ramped. First Solar, the largest fully vertically integrated solar manufacturer in the Western Hemisphere, is also constructing a $1.1 billion, 3.5 GW facility in Louisiana, which is expected to be commissioned in the second half of 2025. The company expects to have over 14 GW of annual nameplate capacity in the United States and 25 GW globally by the end of 2026.

“This is the first of two fully vertically integrated solar manufacturing facilities that solidify the role of the Gulf Coast states in enabling America’s all-of-the-above energy strategy,” said Mark Widmar, chief executive officer, First Solar. “This energy technology manufacturing facility produces American solar panels, with American-made components sourced from a supply chain that spans the country. The hundreds of people that operate this facility represent the next generation of American energy workers and are joined by thousands more steelworkers, glassworkers, miners, truck drivers, railroad workers, and others that enable our mission to support our country’s energy security.”

First Solar’s advanced, highly differentiated manufacturing process allows it to transform a sheet of glass into ready-to-ship thin film solar panels in approximately four hours. The Alabama facility’s entire solar value chain – equivalent to transformation from semiconductor to wafer to cell to module – operates under one roof, using one tightly controlled process with rigorous quality assurance and control. The Series 7 modules produced in Lawrence County use Alabama-sourced steel, smelted, rolled, and fabricated within a 25-mile radius of the facility.

First Solar is unique among the world’s largest solar manufacturers because it is the only US-headquartered company and does not manufacture in China. The company’s operational manufacturing footprint in Ohio and Alabama and Louisiana represent over $4 billion in US manufacturing investments.

A study commissioned by First Solar and conducted by the University of Louisiana at Lafayette projects that as the company grows to 14 GW in annual US nameplate capacity by the end of 2026, it will support an estimated 30,060 direct, indirect, and induced jobs across the country, representing $2.8 billion in annual labor income. Additionally, the study estimates that every direct job First Solar supports in 2026 will support 7.3 jobs nationwide.

Quotes

Ellen McNair, secretary of the Alabama Department of Commerce: “First Solar's $1.1 billion manufacturing facility in Lawrence County is likely the largest investment project ever undertaken in one of our rural counties, demonstrating that our rural communities are prepared to meet any challenge. This is also a highly positive development for Alabama’s expanding green energy sector and strengthens our state’s growing leadership in the US clean energy industry.”

Amard Martin, commissioner, Lawrence County: “The inauguration of First Solar is a tremendous milestone for Alabama, particularly for Lawrence County and District One. First Solar’s investment is not only a step forward in clean energy but also a major boost for our local economy. This project brings much-needed jobs, strengthens our infrastructure, and reinforces Alabama’s position as a leader in innovation and sustainability. We are excited about the opportunities this facility will create for our community and future generations.”

Bobby Burch, commissioner, Lawrence County: “From a micro level, having First Solar is great for Lawrence County and its neighboring counties. And from a macro level, American-made First Solar panels, with their advanced technology, will greatly influence the global renewable energy market for future generations.”

John Bradley, SVP of Economic Development, TVA: “This marks a significant step forward in advancing our shared goals toward a clean energy future. We are proud to partner with the Alabama Department of Commerce and the Lawrence County Industrial Development Board to support companies creating jobs and investment in our communities and look forward to First Solar’s future business success here in Alabama.”

About First Solar, Inc.

First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film PV modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV modules. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.

For First Solar Investors

This press release contains various “forward-looking statements” which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements concerning First Solar’s expectations that i) the solar manufacturing facility in Lawrence County, Alabama is expected to create over 800 new energy technology manufacturing jobs; (ii) the company will have over 25 GW of annual global nameplate capacity and 14 GW of US nameplate capacity by the end of 2026; iii) the company will commission its new manufacturing facility in Louisiana in the second half of 2025; and iv) First Solar’s Ohio, Alabama, and Lousanna investments are expected to bring the company’s total investment in American manufacturing to over $4 billion. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on First Solar’s current expectations and First Solar’s projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. First Solar undertakes no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause First Solar’s actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission. This press release contains references to data and information generated by an economic study conducted by the Kathleen Babineaux Blanco Public Policy Center at the University of Louisiana at Lafayette. The economic study is based on numerous assumptions, estimates and other data as more fully described in the report summarizing the study’s findings, which is available at www.firstsolar.com/USeconomy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240926270735/en/

Media

Reuven Proença

First Solar Media

reuven.proenca@firstsolar.com

Investors

Richard Romero

First Solar Investor Relations

investor@firstsolar.com

Source: First Solar, Inc.

FAQ

What is the capacity of First Solar's new Alabama facility?

First Solar's new facility in Lawrence County, Alabama, adds 3.5 gigawatts (GW) of fully vertically integrated nameplate solar manufacturing capacity in the United States.

How many jobs will First Solar's Alabama facility create?

The new First Solar facility in Lawrence County, Alabama, is expected to create over 800 new energy technology manufacturing jobs in the state.

What is First Solar's (FSLR) total US manufacturing capacity after opening the Alabama facility?

With the addition of the Alabama facility to its three operating factories in Ohio, First Solar's (FSLR) domestic nameplate manufacturing capacity reaches nearly 11 GW.

What is First Solar's (FSLR) projected global manufacturing capacity by the end of 2026?

First Solar (FSLR) expects to have 25 GW of global annual nameplate capacity by the end of 2026.

How long does it take First Solar to produce a solar panel at the new Alabama facility?

First Solar's advanced manufacturing process allows it to transform a sheet of glass into ready-to-ship thin film solar panels in approximately four hours at the Alabama facility.