Canadian Solar Revives U.S. Manufacturing in Strategic China Partnership

Canadian Solar Inc. announced plans to restart solar panel production in the United States. The move comes through a new joint venture with its majority-owned subsidiary in China, CSI Solar. The company will reopen a factory in Mesquite, Texas. This facility is expected to begin manufacturing by the end of 2024. It aims to produce up to 5 gigawatts of solar modules annually. This decision capitalizes on new U.S. incentives for domestic clean energy manufacturing. The Inflation Reduction Act offers tax credits for American-made components. The joint venture structure is notable. Canadian Solar will control 75% of the Texas factory. Its Chinese subsidiary, a major global supplier, will hold the remaining 25% and provide the manufacturing equipment. The arrangement allows the company to leverage its existing supply chain. It also ensures the U.S.-made products qualify for federal benefits aimed at boosting domestic production.