‘Our long-term vision is solar-plus-storage’, Freyr says, following Trina module manufacturing plant acquisition

When asked about the deal this week, Daniel Barcelo, Freyr CEO, exclusively told PV Tech Premium that the deal will help the company shift towards a more vertically integrated solar-plus-storage offering in the US. Freyr is already building a battery manufacturing plant in the state of Georgia, and expects to select a site for a new cell manufacturing plant by the second quarter of next year.

“Our long-term vision is solar-plus-storage,” said Barcelo. “In 2024, solar-plus-batteries accounted for 81% of projected 2024 utility-scale electricity generating capacity additions in the US, and that’s expected to continue growing. We’ve heard from the market [and] customers that they want this pairing, and we know there are financial synergies to doing so.

“Despite that growing demand, however, and as far as we’re aware, we don’t see many other companies moving towards that total level of vertical integration. We see this as a significantly, and arguably unrealised, opportunity.”

Barcelo also noted that he expects the move to deliver on what he called “the three Cs” of building capacity, increasing competency and driving competitiveness in the US solar space.

“We see the Wilmer, Texas acquisition as a critical first step towards the three Cs,” said Barcelo. “At the end of the day, this is about regional energy security and reliability, supporting American businesses, creating new jobs and developing clean and efficient sources of energy for our future, which ultimately will reduce the overall energy bill for all significantly.”

Trump’s presidency looms large

When asked about the deal, Christian Roselund, senior policy analyst at the Clean Energy Associates (CEA), exclusively told PV Tech Premium that the deal could be motivated more by concerns over policy than anything pertaining to the factory itself.

“We have no indication that there are any issues with the facility or its operation, nor do we have direct knowledge of what drove Trina’s decision,” said Roselund. “What we do know is that there are several proposed policies that could prevent companies listed as Foreign Entities of Concern from accessing the Section 45X credits, as called for in multiple bills filed over the course of 2023 and 2024. Trina may be mitigating that risk.”

Indeed, with the re-election of Trump, all major US clean energy deals, such as this, are taking place in the context of the threat of higher tariffs and a more protectionist trade policy.

While Roselund noted that it is difficult to make “clearly defined predictions” about implications of the Trump re-election, he said that the work of the previous Trump administration could indicate a desire for greater tariffs.

“The inclusion of Robert Lighthizer in the Trump administration may also signal similar measures to the wide-ranging 25% tariffs against Chinese goods previously imposed and still in effect under Section 301. The previous Trump administration also imposed tariffs on various global imports under Section 201 and 232, including on European goods.”

However, this approach could be viewed in a more positive light. Mike Carr, executive director of the Solar Energy Manufacturers for America (SEMA) Coalition, which works to advocate onshoring US solar manufacturing capacity, added that Trina’s divestment from a project on US soil could help address the US’ reliance on solar products made by Chinese companies.

“President-elect Trump has been very clear that he will raise tariffs on China,” Carr told PV Tech Premium this week. “We look forward to working with the Trump administration on trade and industrial policy. Chinese-owned companies keep shifting countries to undermine our trade laws, so we hope that trade actions can be taken to address this.”

Barcelo, meanwhile, suggested that there was no significance to the fact that the deal was announced on the same day as the US election results.

“As you might imagine, deals of this nature take time to develop, so we have been working on the terms for a while,” said Barcelo, when asked about the timing of the announcement. “As a public company, there are specific guidelines around announcing material non-public information. Once the elements were finalised, we announced things publicly and the timing happened to be what it was.”

US legislation continues to attract investment

Barcelo, Carr and Roselund all suggested that the supportive legislation in place for domestic US solar manufacturing, most notably the 45X production tax credit (PTC), the rules of which were finalised last month, had played a key role in facilitating this transition.

“US PV module factories represent an attractive investment opportunity as long as factory owners are able to access the Section 45X tax credit, and as long as they can retain a team with the experience to successfully operate these factories,” said Roselund.

While some have expressed concern that Trump will seek to undo legislation introduced under president Biden, including the landmark Inflation Reduction Act (IRA) and related tax benefits, the fact that such policies have received bipartisan support means they may endure the upcoming Trump presidency.

“We are always happy to see manufacturers make investments in the US. The 45X tax credit, domestic content bonus, and strategic trade policy are clearly incentivising this investment,” said Carr, who went on to point to the relative struggles of the European manufacturing space compared to the US, which has seen leading Swiss manufacturer shift its focus to the US.

“While many EU solar manufacturers have reduced operations due to anti-competitive practices from China, the US has the policy framework needed to compete. We are hopeful that this new deal will continue the momentum to re-shoring a secure US solar supply chain.”

Freyr could well be one of those European manufacturers to shift attention to the US solar industry, albeit one coming from a different sector, that of batteries. Barcelo called the range of policy support for US solar manufacturing a “strong benefit” to locating production capacity in the US.

“We also view the emphasis on opex-friendly policies, for example, the 45X PTCs, as a distinct and important benefit to scaling production,” he added, also pointing to the 45X credits. “Capex benefits are absolutely critical, but they alone can’t help bolster a nascent clean energy sector.

“The IRA has been a fantastic vehicle for spurring support, interest and investment in the space and for bolstering the energy transition. Ultimately it is in the US national interest to have a robust domestic solar industry. Tax credits for the solar industry, as well as incentives for manufacturing in general, are a well-established part of the tax code.”