Canadian Solar Inc. announced that its subsidiary, CSI Solar Co., Ltd. (“CSI Solar”) has recently entered into a multi-year investment agreement with the municipal government of Hohhot, located in Inner Mongolia, China. This collaboration aims to facilitate the execution of Canadian Solar’s capacity expansion and vertical integration plans.
The first phase of the investment concerns the development of manufacturing capacities, including 20 GW of ingot, 40 GW of crucible, 10 GW of wafer, 10 GW of cell, 5 GW of module, and 5 GW of ancillary products. With production commencing in March 2024, the ingot capacity will be followed by the rest of the capacities expected to begin production in the second half of 2024. The total capital expenditures for this initial phase are projected to amount to approximately RMB 11.5 billion (around US$1.6 billion), with a significant portion of these investments scheduled for 2024.
Canadian Solar’s polysilicon investment in Qinghai, China, which was previously announced, has experienced a delay in its launch as scheduled due to alterations in the local power supply situation.
Dr. Shawn Qu, Chairman and CEO of Canadian Solar, noted, “We are building new solar manufacturing capacity with cutting-edge technologies to meet the strong demand from our customers. Inner Mongolia has plenty of wind and solar resources and the local renewable energy penetration is increasing steadily, helping us reduce the carbon footprint of our supply chain. In addition, Inner Mongolia has abundant supply of power, polysilicon, and quartzite. By further increasing the level of vertical integration throughout our manufacturing processes, we gain greater control over technology, cost, and supply chain and build on our long-term competitive advantage.”
