Korean firms exploit US solar market, lacking Chinese competition
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Korean companies, including OCI Holdings and Hanwha Solutions, are focusing on the U.S. solar market as their Chinese competitors face restrictions under the Trump administration. OCI Holdings is investing $78 million to acquire a 65% stake in Elite Solar Power Wafer’s plant in Vietnam to produce wafers exempt from the “prohibited foreign entities” list. Hanwha Solutions is completing a solar hub in Georgia to produce ingots, wafers, cells, and modules at one location, with only polysilicon production being outsourced to OCI Terrasus, aiming to benefit from the U.S. Inflation Reduction Act.
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An illustration of a Vietnamese wafer plant that OCI Holdings will acquire / Courtesy of OCI Holdings
Korean Corporations Expand Solar Market Presence in U.S. amidst Trump Administration
The Korean companies, Hanwha Solutions and OCI Holdings are strategically expanding their operations in the U.S. solar market as their Chinese counterparts have experienced a restriction in sales due to policies set by the Trump administration.
According to an announcement made by OCI Holdings on Monday, the firm plans to invest $78 million in order to acquire a 65% stake in a wafer production facility owned by Elite Solar Power in Vietnam. The acquisition expected to be completed by the end of the month, is focused on the production of wafers that do not rely on “prohibited foreign entities.”
The recent U.S. One Big Beautiful Bill Act, implemented in July, denies tax benefits to solar products that sourced their materials and components from prohibited foreign entities. This includes China, which has led to the surge of Korean firms in the U.S. solar market.
OCI Holdings has further stated that the Vietnamese plant will procure all its polysilicon from its subsidiary, OCI Terrasus. This move will create a complete vertical integration, thereby improving both competitiveness and profitability.
The Chairman of OCI Holdings, Lee Woo-hyun expressed that the strategic investment will enable the firm to build a supply chain that will boost U.S. exports. He also emphasized the company’s intention to strengthen its global presence by fostering partnerships with Southeast Asian companies.
Hanwha Solutions’ solar hub is under construction in Catersville, Ga., in this undated photo. Courtesy of Hanwha Solutions
Hanwha Solutions’ Q Cells Division also has plans to complete a solar hub project in Georgia by the end of the year, adopting a strategy that avoids price competition with Chinese rivals.
While these strategies represent a significant push for Korean solar firms in the U.S., companies like OCI Holdings remain cautious due to the Trump administration’s skepticism towards renewable energy. Earlier, OCI Holdings postponed a $215 million investment project in U.S. solar cell production due to policy uncertainties.
Hanwha Solutions is addressing potential policy concerns by investing in communication experts to advocate for its solar cell business in the U.S. Hanwha Q Cells USA reportedly spent $1.6 million on lobbying efforts in the first half of the year, as per U.S. Senate’s lobbying disclosure.
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