TOYO Co Ltd announced plans to build a solar cell manufacturing plant in Ethiopia with a production capacity of 2 GW. The USD 60 million plant will begin operations by the end of the first quarter of 2025.
2 GW Solar Cell Manufacturing Plant
On Monday, solar solutions provider TOYO Co Ltd announced plans to build a large-scale solar cell manufacturing plant in Ethiopia. The company aims to boost its global production with a facility targeting an annual capacity of 2 gigawatts (GW).
The planned investment for the solar facility is estimated at USD 60 million (EUR 54.8 million). TOYO will fund the project using internal resources and pre-payments, ensuring a smooth flow of capital as the company moves forward with its expansion strategy. The plant will be fully automated, making it a cutting-edge addition to TOYO’s production portfolio.
TOYO expects to start fitting out the new plant in November 2024. The facility is scheduled to begin manufacturing at the end of the first quarter of 2025. This timeline will allow the company to ramp up its production to meet rising global demand as more countries transition to renewable energy sources.
The Hawassa facility will be fully automated, ensuring efficiency and quality in solar cell production. This automation will also enable TOYO to reduce operational costs while maintaining high standards in its manufacturing processes. The investment in cutting-edge technology highlights TOYO’s commitment to innovation in the solar energy sector.
Strategic Location in Hawassa, Ethiopia
TOYO has signed a lease agreement for a 31,500-square-metre (339,063 sq ft) terrain in Hawassa, a city in central Ethiopia. This location was chosen due to several key factors that align with TOYO’s renewable energy goals.
Ethiopia’s favorable investment policies — combined with its access to ample hydropower — make it an ideal spot for solar cell production. Hydropower is a sustainable and reliable energy source, contributing to the eco-friendly goals of the company’s manufacturing process.
Another important reason for selecting Ethiopia is the tariff status that benefits companies producing bifacial solar cells. Under Section 201 of the US Trade Act of 1974, Ethiopia is exempted from tariffs on bifacial solar cells. This provides TOYO with a competitive edge as it plans to serve the growing US solar market without the additional cost burden of tariffs.
Ethiopia’s Role in Renewable Energy
Ethiopia’s renewable energy infrastructure has made it an attractive location for foreign investment in the energy sector. The new solar cell manufacturing plant in Hawassa will further enhance Ethiopia’s position as a leader in renewable energy production in Africa.
The project is also expected to create jobs and contribute to the local economy. The plant will generate employment opportunities, particularly in technical and high-skill positions, as Ethiopia continues to attract renewable energy investments. TOYO’s investment will boost local expertise and provide valuable skills development in the renewable energy sector.
Growing Demand for Solar Cells
The global demand for solar cells is expected to rise significantly as countries seek to transition to cleaner energy sources. The US solar market — in particular — is poised for rapid growth, with forecasts predicting up to 592 GW of solar installations by the end of 2024. TOYO’s new plant in Ethiopia will play a key role in meeting this demand by supplying high-quality solar cells to the US and other international markets.
Solar Cells
By expanding its production capabilities, TOYO is positioning itself to become a key player in the global renewable energy sector. The company’s decision to invest in Ethiopia is part of a broader strategy to leverage emerging markets and increase its manufacturing footprint.
TOYO Co Ltd’s plan to build a solar cell manufacturing plant in Ethiopia represents a significant step in its global expansion. The 2 GW facility in Hawassa will boost the company’s capacity to meet the growing demand for solar energy solutions, particularly in the US.