Chinese Solar-Panel Giant Trina to Sell Plant in Texas

Nov 08, 2024

(Bloomberg) -- China’s renewables giant Trina Solar Co. 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.

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Georgia-based Freyr Battery will pay $340 million for Trina’s new 5-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, especially the advanced manufacturing incentive that subsidizes 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 Nov. 1. Freyr, which will form a partnership with Trina, also plans to develop a 5-gigawatt solar cell manufacturing facility with site selection underway.

Chief Executive Officer Daniel Barcelo said in an interview 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.

--With assistance from Jennifer A. Dlouhy.