OCI Holdings has established a solar cell corporation in Texas and has begun building a solar power
$80 million tax credit expected Made from Malaysia polysilicon Cell manufactured and supplied to solar power companies Securing Competitiveness in Supply Chain,··U.S. and China in Non-Chinese Countries
OCI Holdings has established a solar cell corporation in Texas and has begun building a solar power supply chain from Malaysia to the United States. The supply chain promoted by OCI Holdings is OCI TerraSus (polysilicon)-new cell corporation-MSE (module)-OCI energy (solar power generation).
OCI Holdings announced on the 20th that it will establish a solar cell production plant in Texas. The investment amount is 265 million dollars (about 384 billion won). Following the production of 1GW cells in the first half of next year, the company plans to expand 1GW or more in the second half to secure a total of 2GW production capacity. The cell manufacturing corporation will be established in the form of a 100% subsidiary of OCI Enterprises, a U.S. business holding company of OCI Holdings.
As a result, OCI Holdings will build a non-Chinese solar supply chain that extends from polysilicon produced by its Malaysian subsidiary OCI TerraSus to cells, modules, and solar power. Wafer manufacturing, which is a pre-cell stage, will be outsourced. Cells produced by the Texas corporation will be used for MSE and modules manufactured by MSE will be used for OCI Energy’s solar power projects. MSE and OCI Energy are OCI Enterprise subsidiaries. OCI Holdings is also pushing to supply cells not only to MSE but also to other module companies.
OCI Holdings Chairman Lee Woo-hyun said, “We will start producing US cells through the establishment of a solar cell corporation,” adding, “We will gradually strengthen the solar value chain in the United States, starting with the minimum cost and shortest-term project.”
The government policy to encourage solar production in the United States is an opportunity for OCI Holdings. According to the IRA (Inflation Reduction Act), cell manufacturers in the United States have an advanced tax credit (AMPC) benefit of 4 cents per watt. Solar power generation businesses that use more than a certain percentage of U.S.-made parts can receive an additional 10% investment tax credit (ITC). OCI Holdings expects more than $80 million in tax credits following the establishment of the cell corporation.
OCI Holdings decided to establish a U.S. cell corporation after the inauguration of the second Trump administration as the U.S. tariff policy against China was strengthened. The U.S. government’s tariffs on Chinese polysilicon and wafers are 60% each.
Metalsilicon, a raw material for polysilicon manufactured by OCI TerraSus, is all non-domestic, and the company also complies with the Uighur Compulsory Labor Prevention Act (UFLPA) in the United States.
OCI Energy will supply solar power to power supply company CPS Energy in the San Antonio, Texas area beginning in 2027. It has stored 120MW (megawatt) of solar energy in 480MWh (megawatt hour) capacity ESS, and plans to supply CPS energy for 20 years.
OCI Energy operates a 906MW solar development business in Texas. It currently has a total of 5.2 GW of project pipelines.
