U.S. President Joe Biden celebrates Hanwha Solutions' $2.5 billion investment in country

U.S. President Joe Biden speaks at the Detroit Auto Show in Detroit, Michigan, in September. [REUTERS/YONHAP]

U.S. President Joe Biden celebrated Hanwha Solutions’ massive $2.5 billion solar investment in the country, Wednesday.

“Today’s Hanwha Q Cells announcement to make the largest solar investment in U.S. history is a big deal for Georgia’s working families and the American economy,” said Biden in a White House press release.

“And, this investment is a direct result of my economic plan and the Inflation Reduction Act [IRA].”

On Wednesday, Hanwha Q Cells, Hanwha Solutions’ solar division, announced $2.5 billion plan to expand its production facility in the United States.

It is the biggest solar investment in the United States ever, according to the solar cell manufacturer. With the latest investments, Hanwha aims to reach a combined module production capacity of 8.4 gigawatts from its U.S. manufacturing plants by 2024, from the current 1.7 gigawatts.

Biden added that Hanwha’s latest investment “will bring back our supply chains so we aren’t reliant on other countries, lower the cost of clean energy, and help us combat the climate crisis.”

Enacted in August last year, the IRA is designed to be an incentive for products to be made and assembled domestically, with a focus on the clean energy sector.

With the passing of the IRA, Hanwha Solutions has been pushing to strengthen its foothold in the country.

Under the IRA, domestically made solar modules attract a tax credit of 7 cents per watt. U.S.-made solar cells get a 4-cent tax credit per watt and ingots about 4.69 cents per watt. Wafers get a $12 credit for every square meter produced.

That adds up to a total of $875 million in tax credits a year, according to Hanwha Solutions.

Hanwha Q Cells has been running a 1.7-gigawatt solar module factory in Dalton, Georgia, since 2019 and plans to expand its production capacity by 3.4 gigawatts to a combined capacity of 5.1 gigawatts by late this year.

Moreover, Hanwha aims to build a plant in Cartersville, Georgia. It will produce 3.3 gigawatts of solar modules, along with raw materials such as solar ingots, wafers and cells.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]