T1 Expects to Benefit from U.S. Tariffs

Rhea-AI Summary

T1 Energy Inc. (NYSE: TE) expresses support for newly announced U.S. tariffs that align with their strategy to build an integrated domestic solar supply chain. The company operates a 5 GW solar module facility (G1 Dallas) and is developing the G2 Austin solar cell facility in Texas.

CEO Daniel Barcelo states these tariffs should accelerate T1's expansion plans in the U.S. solar value chain. The company currently employs over 1,000 people between G1 and corporate staff, with the planned G2 facility expected to create up to 1,700 new jobs in Milam County, Texas.

The tariffs are anticipated to enhance U.S. solar production competitiveness by providing developers with financial incentives to purchase domestically produced technology.

Positive

• New U.S. tariffs expected to improve company's competitive position
• Operating 5 GW solar module facility already in production
• Planned expansion with G2 Austin facility to create 1,700 new jobs
• Financial incentives for developers to buy domestic technology

Negative

• Heavy dependence on government tariff policies for competitive advantage
• G2 facility still in development phase with uncertain timeline

Insights

Trade Policy Analyst

The newly imposed U.S. tariffs on solar products create a significant competitive advantage for domestic manufacturers like T1 Energy. This policy effectively raises the cost of imported solar components, redirecting market demand toward U.S.-made alternatives. For T1, with its operational 5 GW solar module facility in Dallas already ramping up production, this timing couldn't be more opportune.

The tariffs function as a protective economic moat, allowing T1's American-made solar products to compete more effectively against typically lower-priced foreign alternatives. Solar developers now face financial incentives to source domestically, potentially expanding T1's addressable market and strengthening its pricing position. This policy shift fundamentally improves the economics of T1's manufacturing investments.

T1's two-facility strategy – the operational G1 Dallas plant and the planned G2 Austin cell facility – shows foresight in building an integrated supply chain that maximizes benefits from domestic manufacturing policies. With over 1,000 current jobs and 1,700 additional positions projected at the new facility, T1 is positioning itself as both a beneficiary of and poster child for America-first manufacturing policies.

The company's vertical integration approach further amplifies tariff benefits, as each step of their supply chain potentially receives protection. This creates a multiplier effect on margin improvement compared to companies with partial domestic production.

Manufacturing Economics Specialist

T1 Energy's position as a domestic solar manufacturer transforms what could be an industry headwind into a significant tailwind. The newly announced tariffs establish a protected market environment where T1's G1 Dallas facility can optimize production economics without facing artificially low-priced competition.

The financial mathematics are straightforward: tariffs increase competitor pricing while T1's cost structure remains unchanged, creating an expanded gross margin opportunity. This margin enhancement could accelerate T1's path to profitability for the Dallas facility while improving the return-on-investment calculations for the planned G2 Austin cell facility.

CEO Barcelo's statement that these tariffs will "accelerate our plans" suggests potential timeline compression for the G2 project. The company likely now forecasts stronger early-stage economics, potentially reducing the capital recovery period for this significant investment.

The integrated production model T1 is building creates substantial operational leverage. With both module and cell production domestically located, the company eliminates cross-border logistics complexities and costs while gaining inventory management efficiencies. This vertical integration strategy, now supported by tariff protection, positions T1 as potentially the most cost-efficient fully-domestic supplier in the U.S. market.

The combined workforce of potentially 2,700+ employees also creates scale efficiencies in labor management and training that smaller manufacturers cannot match.

Tariffs underpin U.S. manufacturing competitiveness and reinforce T1’s strategy to build an integrated domestic solar supply chain

AUSTIN, Texas & NEW YORK--(BUSINESS WIRE)-- T1 Energy Inc. (NYSE: TE) (“T1” or the “Company”) supports the imposition of tariffs announced this week by the U.S. administration, which align with the Company’s strategy to establish a vertically integrated U.S. solar plus storage supply chain. With T1’s operating 5 GW solar module facility, G1 Dallas, ramping up production, and project development activities underway for the planned G2 Austin U.S. solar cell facility, T1 is building its American manufacturing footprint and bringing new jobs to Texas.

“The tariffs introduced this week dovetail with our strategy, and the anticipated financial benefits should accelerate our plans to expand T1’s U.S. solar value chain,” commented Daniel Barcelo, T1’s Chairman of the Board and Chief Executive Officer. “The United States needs more domestically produced energy in all forms, and we are positioning T1 to lead a domestic solar manufacturing revival built on leading edge technologies and job creation.”

T1 is positioned to benefit from public policies that promote U.S. manufacturing, technology transfer, and job creation. The Company expects that the tariffs announced this week will enhance the competitiveness of U.S solar production by providing developers with financial incentives to buy domestically produced technology.

Building a U.S. job creation engine

In addition to T1’s current workforce of more than 1,000 people in the United States between G1 and the T1 corporate staff, project development and capital formation activities for the Company’s planned G2 Austin U.S. solar cell facility are underway. T1 expects that G2 will create as many as 1,700 jobs in Milam County, Texas and facilitate the development of an integrated, value creating U.S. manufacturing operation.

About T1 Energy

T1 Energy Inc. (NYSE: TE) is an energy solutions provider building an integrated U.S. supply chain for solar and batteries. In December 2024, T1 completed a transformative transaction, positioning the Company as one of the leading solar manufacturing companies in the United States, with a complementary solar and battery storage strategy. Based in Austin, Texas, with plans to expand its operations in America, the Company is also exploring value optimization opportunities across its portfolio of assets in Europe.

To learn more about T1, please visit www.T1energy.com and follow on social media.

Cautionary Statement Concerning Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation with respect to the Company’s operational performance and profitability (including its strategic objective to become a vertically integrated U.S. solar and storage leader and an engine of American energy, jobs, and advanced manufacturing), creation of jobs in the U.S. and investments in project sites, the timing of production ramp of solar modules, progress on the anticipated timing, development and construction for G2, any production targets at the Company’s facilities, any financial and operating guidance, growth prospects for the U.S. solar and storage market and our ability to generate value from non-core assets and rationalizing costs from discontinued operations. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual future events, results, or achievements to be materially different from the Company’s expectations and projections expressed or implied by the forward-looking statements. Important factors include, but are not limited to, those discussed under the caption “Risk Factors” in (i) T1’s post-effective amendment no. 1 to the Registration Statement on Form S-3 filed with the Securities and Exchange Commission (the “SEC”) on January 4, 2024, (ii) T1’s Registration Statement on Form S-4 filed with the SEC on September 8, 2023 and subsequent amendments thereto filed on October 13, 2023, October 19, 2023 and October 31, 2023, and (iii) T1’s annual report on Form 10-K filed with the SEC on February 29, 2024, and T1’s quarterly reports on Form 10-Q filed with the SEC on May 8, August 9 and November 12, 2024, and available on the SEC’s website at www.sec.gov. Forward-looking statements speak only as of the date of this press release and are based on information available to the Company as of the date of this press release, and the Company assumes no obligation to update such forward-looking statements, all of which are expressly qualified by the statements in this section, whether as a result of new information, future events or otherwise, except as required by law.

T1 intends to use its website as a channel of distribution to disclose information which may be of interest or material to investors and to communicate with investors and the public. Such disclosures will be included on T1’s website in the ‘Investor Relations’ sections. T1 also intends to use certain social media channels, including, but not limited to, X and LinkedIn, as means of communicating with the public and investors about T1, its progress, products, and other matters. While not all the information that T1 posts to its digital platforms may be deemed to be of a material nature, some information may be. As a result, T1 encourages investors and others interested to review the information that it posts and to monitor such portions of T1’s website and social media channels on a regular basis, in addition to following T1’s press releases, SEC filings, and public conference calls and webcasts. The contents of T1’s website and other social media channels shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250404659014/en/

Investor contact:

Jeffrey Spittel

EVP, Investor Relations and Corporate Development

jeffrey.spittel@T1energy.com

Tel: +1 409 599-5706



Media contact:

Amy Jaick

SVP, Communications

amy.jaick@T1energy.com

Tel: +1 973 713-5585

Source: T1 Energy

FAQ

How will the new U.S. tariffs benefit T1 Energy (NYSE: TE)?

The tariffs will enhance T1's competitiveness by providing financial incentives for developers to buy domestically produced solar technology, supporting their integrated U.S. solar supply chain strategy.

What is the current production capacity of T1 Energy's (TE) G1 Dallas facility?

T1 Energy's G1 Dallas facility has a 5 GW solar module production capacity and is currently ramping up operations.

How many jobs will T1 Energy's (TE) new G2 Austin facility create?

The planned G2 Austin solar cell facility is expected to create approximately 1,700 new jobs in Milam County, Texas.

What is T1 Energy's (TE) current U.S. workforce size?

T1 Energy currently employs over 1,000 people in the United States between their G1 facility and corporate staff.