First Solar Inaugurates 3.3 GW Manufacturing Facility in India

Rhea-AI Summary

First Solar, Inc. (Nasdaq: FSLR) inaugurates India's first fully vertically integrated solar manufacturing plant in Tamil Nadu. The facility has an annual capacity of 3.3 gigawatts, employs 1,000 people, and represents a $700 million investment. It is the company's sixth operational factory and expands its global manufacturing footprint to four countries. The facility is unique for producing tellurium-based semiconductor photovoltaic solar modules, avoiding dependence on Chinese crystalline silicon supply chains.

Insights

Energy Sector Analyst

The inauguration of First Solar's new manufacturing facility in Tamil Nadu represents a significant development in the renewable energy sector, particularly within the solar energy market. First Solar's expansion into India with a $700 million investment underscores the company's strategic initiative to diversify its manufacturing base and reduce reliance on Chinese crystalline silicon supply chains. This move could enhance First Solar's competitive edge by leveraging India's manufacturing capabilities and aligning with global efforts to secure energy supply chains.

From an industry perspective, the facility's annual nameplate capacity of 3.3 GW and the company's growth strategy, aiming to reach 25 GW by 2026, signal a substantial increase in solar module supply. This could potentially lower module costs due to economies of scale and improved supply chain efficiencies. Investors and stakeholders should monitor First Solar's operational performance in India and its impact on global market dynamics, including pricing and supply availability.

Environmental Sustainability Expert

First Solar's establishment of the world’s first net-zero water withdrawal solar manufacturing facility is a groundbreaking achievement in environmental sustainability. The company's commitment to using tertiary treated reverse osmosis water from the city's sewage treatment plant and achieving zero wastewater discharge addresses critical environmental concerns, particularly in a region with high baseline water stress. Furthermore, the presence of India's first solar PV recycling plant within the facility sets a new standard for sustainability in the solar industry.

This approach not only mitigates the environmental impact but also strengthens First Solar's brand as a leader in sustainable manufacturing. The long-term implications include potentially influencing industry-wide adoption of similar practices and contributing to the overall reduction of the carbon footprint of solar energy production. Stakeholders interested in sustainable investments may find First Solar's practices align with Environmental, Social and Governance (ESG) criteria, which could influence investment decisions and company valuations in the renewable energy sector.

Global Trade and Economic Relations Expert

The collaboration between the US and India, as exemplified by the US International Development Finance Corporation's $500 million financing for First Solar's facility, demonstrates the strengthening economic ties between the two countries. This partnership is significant as it aligns with broader geopolitical strategies to diversify supply chains and reduce dependency on specific regions, notably China.

The strategic location of the facility in India, which is a rapidly growing market for renewable energy, presents opportunities for First Solar to capitalize on local demand while also serving as a hub for exports to other markets. The economic implications of such investments include job creation, technology transfer and the potential to stimulate further foreign direct investment (FDI) in India's renewable energy sector.

Investors should consider the potential ripple effects of this development on the global trade landscape, as it may influence future international trade agreements and energy policies, particularly in the context of renewable energy and climate change mitigation efforts.

Facility is India’s first fully vertically integrated solar manufacturing plant

CHENNAI, India--(BUSINESS WIRE)-- First Solar, Inc. (Nasdaq: FSLR) today inaugurated its new facility in Tamil Nadu, India, the country’s first fully vertically integrated solar manufacturing plant. The Minister for Industries, Promotions and Commerce of the Government of Tamil Nadu, Dr T R B Rajaa inaugurated the facility in a ceremony attended by the United States Ambassador to India, Eric Garcetti, and Scott Nathan, Chief Executive Officer of the US International Development Finance Corporation (DFC).

First Solar inaugurated its new facility in Tamil Nadu, India, the country’s first fully vertically integrated solar manufacturing plant. The Minister for Industries, Promotions and Commerce of the Government of Tamil Nadu, Dr T R B Rajaa, the United States Ambassador to India, Eric Garcetti, and Scott Nathan, Chief Executive Officer of the US International Development Finance Corporation (DFC) inaugurated the facility at a ceremony today. (Photo: Business Wire)

“We are pleased that First Solar chose Tamil Nadu for this landmark investment, solidifying our state’s position as India’s hub for manufacturing,” said Dr T R B Rajaa. “This factory sets a high bar for sustainability and advanced manufacturing and has created high-value jobs as a result of its presence in our state, all while supporting India’s ambition to become self-sufficient in solar technology.”

The facility, which has an annual nameplate capacity of 3.3 gigawatts (GW) and directly employs approximately 1,000 people, produces First Solar’s Series 7 photovoltaic (PV) solar modules, which were developed at the company’s research and development centers in the US and optimized for the Indian market. First Solar is unique among the world’s largest solar manufacturers for being the only US-headquartered company. The company’s tellurium-based semiconductor, which allows it to avoid dependence on Chinese crystalline silicon supply chains, is the second most common photovoltaic technology available today.

Ambassador Eric Garcetti said, “One month ago in Dubai, COP28 participants issued a bold call for the world to transition away from fossil fuels, to achieve net-zero emissions by 2050. This First Solar production facility will help advance our global transition to cleaner, greener energy, and stands as a shining example of what can be achieved when the United States and India work together – across government and private sectors – to achieve lasting climate action.”

Representing an investment of approximately $700 million, which includes $500 million in previously announced DFC financing, the facility is First Solar’s sixth operational factory and expands the company’s global manufacturing footprint to four countries, including the US, Malaysia, and Vietnam.

“The United States is leveraging American innovation and technology to diversify critical energy supply chains around the world and drive economic growth in India,” said DFC CEO, Scott Nathan. “That’s good for the United States and it’s good for India. This $500 million in financing reflects the increasing strength of our partnership with India – DFC’s largest market and a like-minded partner with a dynamic private sector.”

Since the start of this decade, First Solar has embarked on a $4.1 billion manufacturing expansion strategy that has seen it grow from approximately 6 GW operational in 2020 to over 16 GW global nameplate capacity at the end of 2023. In addition to its India facility, the company also commissioned its third US factory, located in Ohio, in 2023. The company is further growing its footprint in the US with a 0.9 GW expansion of its Ohio manufacturing complex and new factories in the states of Alabama and Louisiana, which are each expected to add 3.5 GW of annual nameplate capacity, once commissioned and ramped. The company expects to have 25 GW of global annual nameplate capacity by 2026.

“The inauguration of this landmark manufacturing facility and the launch of commercial shipments to customers in India is a crucial milestone in our journey to long-term and sustainable growth,” said Mark Widmar, CEO, First Solar. “The speed with which we were able to build and commission this facility is a testament to the policies of India’s Federal and the Tamil Nadu state governments.”

Widmar added, “We are proud of our associates who worked tirelessly to replicate and adapt our advanced solar manufacturing template for India. Thanks to their work, our newest facility doesn’t just set standards for our global manufacturing footprint, but for our industry.”

The factory, which is located in an area of high baseline water stress, is believed to be the world’s first net-zero water withdrawal solar manufacturing facility. Designed to minimize its impact on local water resources, the facility will rely entirely on tertiary treated reverse osmosis water from the city's sewage treatment plant and have zero wastewater discharge. Additionally, the factory is home to India’s first solar PV recycling plant. The company pioneered high value solar recycling, which provides closed-loop semiconductor recovery for use in new modules, while also recovering other materials including aluminum, glass, and laminates.

The Series 7 module produced by the new facility is the industry’s most eco-efficient with a carbon and water footprint that is approximately four times lower than crystalline silicon solar panels produced in China. The company’s sustainable manufacturing approach uses 50% less energy and only a third of the water than an equivalent polysilicon module production facility would require.

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 expectation to have 25 GW of annual nameplate capacity by 2026. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240111067742/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 name of the company that inaugurated India's first fully vertically integrated solar manufacturing plant in Tamil Nadu?

First Solar, Inc. (Nasdaq: FSLR)

What is the annual capacity of the solar manufacturing plant inaugurated by First Solar, Inc. in Tamil Nadu?

The facility has an annual capacity of 3.3 gigawatts.

How much was the investment made by First Solar, Inc. in the new facility in Tamil Nadu?

The investment represents approximately $700 million.

How many people does the new facility in Tamil Nadu employ?

The facility directly employs approximately 1,000 people.

In how many countries does First Solar, Inc. have operational factories?

First Solar, Inc. has operational factories in four countries, including India.