In 2024, China's photovoltaic (PV) industry has entered a period of unprecedented transformation.
CNENERGYNEWS
In 2024, China's photovoltaic (PV) industry has entered a period of unprecedented transformation. Intensified domestic competition has slowed capacity growth within the country, while overseas expansion has continued to progress steadily. The industry is transitioning from a model characterized by "global sales" to one emphasizing "global manufacturing," with production capacity extending from its initial concentration in Southeast Asia to a broader global scale. This signifies the evolution from the export-driven "Going Global 1.0" phase to the more flexible, business-model-oriented "Going Global 2.0" phase, where overseas investments are increasingly diversified.
According to incomplete statistics, by August 1, over ten Chinese PV enterprises had expanded into the Middle East, signaling a new chapter in their global strategy. Since August, eight additional enterprises have made significant decisions to establish overseas manufacturing facilities, involving various segments of the PV industry chain. A detailed breakdown is as follows:
1. Hongshi Group's Investment in Indonesia. Rosan Perkasa Roeslani, Indonesia's Minister of Investment and Chairman of the Investment Coordinating Board (BKPM), stated that during December 18-20, 2024, multiple Chinese companies committed to new investments in Indonesia totaling $7.46 billion (approximately RMB 55.767 billion). Among these, Hongshi Group plans to invest $5 billion in phases to establish an industrial park in Indonesia. The park will include production facilities for silicon, polysilicon, solar cells, and modules, as well as a 2GW power plant.
2. JA Solar's Announcement of an Oman Facility. On December 19, 2024, JA Solar announced its intention to invest RMB 3.957 billion to construct a manufacturing facility in Oman's Sohar Free Zone. The facility will have an annual capacity of 6GW for high-efficiency solar cells and 3GW for high-power solar modules. The investment represents 11.27% of the company's most recently audited net assets. The funding sources include internal resources, external equity financing, and institutional financing, with the company planning to coordinate these sources to ensure smooth project implementation. JA Solar emphasized that globalization is a core part of its strategy, with overseas business now accounting for more than 50% of its total revenue.
3. Deye Corporation to Build a Facility in Malaysia. On December 16, 2024, Deye Corporation announced its plan to establish a wholly-owned subsidiary, tentatively named Deye Malaysia Company, and build a production base in Malaysia. This base will focus on PV equipment and energy storage batteries. The total investment will not exceed $150 million (approximately RMB 1.095 billion). The company's board has approved the plan, authorizing management to handle all related matters, including asset purchases, agreements, registration, and project filing.
4. JA Solar and Partners to Establish Factories in Egypt. On November 21, 2024, JA Solar signed a memorandum of understanding (MoU) with Egypt and UAE-based Global South Utilities to build two solar factories in Egypt, each with a 2GW capacity. One factory will focus on solar cell production, while the other will manufacture modules. The estimated investments are $138 million for the cell factory and $75 million for the module factory. These projects are crucial to supporting Egypt’s renewable energy ambitions and meeting its growing energy demands.
5. Kibing Group's Solar Glass Plant in Malaysia. In November 2024, Kibing Group committed to investing RM 7.2 billion in a solar glass manufacturing plant in Sabah, Malaysia. The company signed agreements with two state-owned enterprises, securing land leases and daily gas supplies of 45 million standard cubic feet. The plant aims to become a benchmark project in the global solar glass sector.
6. Adani Solar's Component Production Facility in France. Adani Solar plans to invest €109 million (approximately RMB 836 million) in a 3GW solar component manufacturing facility in Mandeure, Doubs, France. The project will repurpose a 51,000-square-meter site formerly used by the automotive supplier Faurecia. The plant will feature three advanced production lines for solar components and aims to integrate further into the solar value chain by collaborating with Chinese and French suppliers.
7. Suntech Group's Collaboration with Iran's Ghadir Investment Group. At the 7th China International Import Expo in November 2024, Suntech Group signed an MoU with Iran's Ghadir Investment Group for a €1 billion solar power plant project. The collaboration includes joint investments and EPC+F arrangements. Upon completion, the plant is expected to supply 2 billion kWh of solar electricity annually to Iran.
8. Arctech Solar's Expansion in Brazil. On October 26, 2024, Arctech Solar announced plans to establish a 3GW production base in Brazil through its local subsidiary. The project's total investment is capped at RMB 430 million and will support the company's operations in the Latin American market.
9. Qinghai Lihao's Comprehensive Project in Angola. On October 18, 2024, Qinghai Lihao signed an MoU with Angola's national oil company to develop a comprehensive PV value chain in Angola. This includes mining quartz, producing silicon, and manufacturing polysilicon and solar modules. The facility's initial annual production capacity is expected to be 50,000 tons of silicon, scaling up to 18,000 tons of metallurgical silicon and 15,000 tons of polysilicon.