Ontario-based module manufacturer Canadian Solar announced it will locate a production facility in Mesquite, Texas.
The manufacturing site decision follows a move by Canadian Solar two years ago to relocate its subsidiary Recurrent Energy to the Texas state capital of Austin. The Lone Star State is already a national leader in wind energy projects and growing in solar and battery storage.
The anticipated $250 million factory, once completed and operational, is expected to produce a capacity of about 5 GW per year producing some 20,000 solar modules annually, according to Canadian Solar. Construction should begin later this year.
“Establishing this factory is a key milestone that will enable us to better serve our U.S. customers,” company founder and CEO Shawn Qu said in a statement. “We hope that this is the first of many long-term investments we expect to make in the U.S. as we think strategically about a sustainable and resilient clean energy supply chain.”
Once completed, this would be Canadian Solar’s first U.S. manufacturing facility. The country is receiving many commitments to locate energy transition sector production sites in the wake of incentives from several pieces of legislation during the Biden Administration, including the Infrastructure and Inflation Reduction Acts. Some of those companies vowing to build or having moved manufacturing into the U.S. include AESC, LG Solution, Microvast, FREYR Battery and Fluence Energy.
Texas already generates 26 percent of the utility-scale wind energy capacity nationwide, and several developers are building massive solar and hybrid solar-storage projects in or near the state.
“Texas is an energy production powerhouse, and we embrace an all-of-the-above energy strategy,” U.S. Sen. Ted Cruz, R-Texas, said. “It’s great to see this incredible investment in Mesquite,” he added, noting that the project could employ some 1,500 people.
Canadian Solar, through its subsidiaries such as CSI Solar and CSI Energy Storage, is a supplier for generation equipment for multiple energy transition projects around the world. On the solar front, it reported shipping some 6.1 GW of solar module capacity in the first quarter.
The company also reported about $84 million in first-quarter net income.