Canadian Solar is forming a new joint venture with US shareholders to produce and sell its US-based solar panels and energy storage. This new strategic initiative will allow the company to “resume direct supervision of its U.S. operations.”
Canadian Solar will acquire a controlling interest of 75.1% in the new CS PowerTech, a joint venture between American shareholders and CSI Solar, the majority subsidiary of Canadian Solar. CS PowerTech will produce and sell solar panels, solar cells and BESS in the US. Canadian Solar will also acquire from CSI Solar a 75.1% ownership of certain overseas facilities that support its U.S. operations. These assets are valued at $50 million.
“The launch of CS PowerTech and the resumption of production directly under its publicly traded parent company reflects Canadian Solar’s commitment to its North American home base and to building a resilient, transparent and diversified domestic supply chain,” Canadian Solar said in a press release.
Ontario-based Canadian Solar operates primarily from China. The company currently has a 5 GW solar panel assembly plant in Texas and is building a solar cell manufacturing facility in Indiana. Subsidiary e-STORAGE also plans to open a 3 GWh BESS plant in Kentucky. It is then assumed that these activities will fall under the CS PowerTech name, along with any US sales efforts.
Other Chinese-influenced companies with U.S. factories have swapped ownership of their operations to appear less foreign in order to comply with new Foreign Entity of Health (FEOC) rules. Trina Solar sold its solar panel assembly plant in Dallas to T1 Energy, and JA Solar sold its solar panel plant in Phoenix to Corning.
