OCI Holdings to Build Solar Cell Plant in Texas, Investing $260 Million
OCI Holdings has announced its plan to independently establish a solar cell plant at the site of its U.S. solar business subsidiary, Mission Solar Energy (MSE), as part of its efforts to expand the U.S. solar value chain.
On March 20, the company revealed its intention to invest a total of $265 million (approximately 384 billion won) in constructing the solar cell production plant, aiming to commence commercial production of 1 gigawatt (GW) of solar cells in the first half of 2026. By the second half of next year, the company plans to secure a total production capacity of over 2GW through gradual expansion of 1GW.
Through this initiative, OCI Holdings aims to establish a non-Chinese solar supply chain that links polysilicon from its Malaysian subsidiary OCI Terras (formerly OCI M) to the cells of the new corporation. OCI Terras’s solar-grade polysilicon is based on Malaysia’s eco-friendly hydropower, meeting the RE100 requirements and complying with the Uyghur Forced Labor Prevention Act (UFLPA) enforced by the U.S. Customs and Border Protection (CBP), making it highly regarded as a product favorable for export to the U.S. by global clients. U.S. cell manufacturers receive an Advanced Manufacturing Production Credit (AMPC) of 4 cents per watt (W) under the Inflation Reduction Act (IRA). For clients, solar projects (power generation businesses) using a certain percentage of U.S.-made components, such as these cells, can benefit from an additional 10% Investment Tax Credit (ITC), enhancing profitability.
According to a Bloomberg report, the current solar cell production capacity in the U.S., including ongoing projects, falls short by about 90%. OCI Holdings has been carefully considering strategic investments, such as joint ventures (JV) with global partners, to establish a foundation for mid- to long-term growth. With the increasing uncertainties due to the acceleration of U.S. tariffs on China following the election of President Donald Trump, OCI Holdings decided to establish this new corporation to secure competitiveness in the U.S. market.
Since becoming the first domestic company to enter the U.S. solar module manufacturing business in 2014, OCI Holdings has ventured into various solar businesses over the past decade. The establishment of this solar cell production plant is expected to reduce costs by utilizing existing sites and facilities and expedite commercial production by over a year compared to competitors, thanks to pre-obtained permits and approvals.
Lee Woo-hyun, chairman of OCI Holdings, stated, “With the establishment of this new solar cell corporation, we are commencing the production of U.S.-made cells from OCI Terras’s polysilicon, creating a ‘clean supply chain.’ Starting with this cost-effective and swift project, we will gradually strengthen the solar value chain in the U.S.”