CSI Solar Co. Ltd., a majority-owned subsidiary of Canadian Solar Inc., has entered into a multi-year investment agreement with the municipal government of Hohhot, in Inner Mongolia, China, to invest and execute on its previously announced capacity expansion and vertical integration plans.
The initial phase of the investment includes 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 manufacturing capacities. The ingot capacity is expected to commence production in March 2024, and the remaining capacities are expected to begin production in the second half of 2024. Total capital expenditures for the initial phase of this investment is expected to be approximately $1.6 billion, most of which will occur in 2024.
“We are building new solar manufacturing capacity with cutting-edge technologies to meet the strong demand from our customers,” comments Dr. Shawn Qu, Canadian Solar chairman and CEO. “In addition to its abundant supply of polysilicon and quartzite, 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.”