First Solar will build a new solar panel manufacturing facility in the U.S., the company announced on Tuesday.
The Tempe, Arizona company will invest up to $1 billion for a plant planned in the Southeast of the U.S., as the firm take advantage of the Inflation Reduction Act which incentivizes domestic manufacturing.
“We believe that with the IRA we have a durable industrial policy foundation, one that we have long been advocating for, that’s comprehensive in its foundation and will enable the solar industry as a whole,” First Solar CEO Mark Widmar said to reporters.
Widmar added that this is the first time the entire supply chain has been incentivized, from the manufacturer to the generating asset and finally to the end customer.
The newly announced plant will be the panel maker’s fourth fully integrated U.S. factory.
First Solar also said that it will spend $185 million upgrading and expanding its existing facilities in Ohio.
The new factory will manufacture 3.5 gigawatts of solar modules annually by 2025.
Some 90% of panels installed in the U.S. are made overseas, mostly in China, however imports have been impacted by supply chain disruptions and tariff threats.
The expansions are expected to create 850 jobs and bring the company’s total U.S. workforce to 3,000.