Japanese cell and module manufacturer Toyo Solar plans to build a 2GW solar cell plant in Ethiopia.
Construction is expected to start in November 2024, with production expected to begin at the end of the first quarter of 2025.
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Toyo Solar plans to use the cells produced at the Hawassa plant in Ethiopia at its module assembly plant in the US, which is currently under construction, while diversifying its supply chain. With an annual nameplate capacity of 2GW, Toyo expects the module assembly plant in the US to be commissioned in 2025.
Unveiled last month, the company also highlighted it expects to produce cells in the US in the first half of 2026, a year after opening the Ethiopia cell plant.
“We are thrilled to embark on this ambitious project, which will enable us to rapidly scale up solar cell production to meet the needs of our planned module facility in the US. Establishing this manufacturing plant is a key step in our strategic vision to diversify our supply chain and enhance our sourcing capabilities for solar solutions in the global market,” said Junsei Ryu, CEO of Toyo Solar.
Construction of the solar cell plant in Ethiopia will represent an estimated US$60 million investment and will be financed through internal resources and pre-payments. The PV manufacturer selected a 31,500m2 facility that will be modified to meet the needs of an automated cell production plant, while creating up to 880 jobs, including positions in manufacturing and engineering.
Moreover, Toyo Solar selected the country due to its favourable policies, tariff status—Ethiopia is exempt of from tariffs for bifacial solar cells under Section 201 of the Trade Act of 1974 of the US, according to the company—and electricity generation predominantly (nearly 90%) coming from hydropower.
An initiative aimed to scale up renewable energy manufacturing capabilities in Africa was launched in 2023 by Sustainable Energy for All (SEforALL), the African Climate Foundation, Bloomberg Philanthropies, ClimateWorks Foundation and the Chinese Renewable Energy Industries Association. The initiative aims to unlock up to US$850 million in investments in renewable power manufacturing across the continent.
A report accompanied the launch of that initiative, which highlighted ten countries to build solar PV or battery storage manufacturing capacity. Ethiopia was not one of the countries on the list.
Toyo Solar’s work represents a step forward for solar manufacturing in Africa, following a swathe of PV manufacturing announcements made in Middle Eastern countries. Elsewhere in Africa, Singapore-headquartered EliTe Solar recently unveiled plans to build an 8GW solar cell and module plant in Egypt’s Suez Canal Economic Zone. The plant would be commissioned in two phases, with the first one bringing 2GW of solar cell annual nameplate capacity online, and EliTe Solar aims to finish the second phase by September 2025.
