In a major boost to the US solar industry, Ebon Solar has announced plans to construct a $942 million solar cell manufacturing facility in Albuquerque, New Mexico. This ambitious project, set to create 900 full-time jobs, marks a significant step towards bolstering domestic solar production capabilities.
A Strategic Location
The new facility will be situated in Albuquerque's Mesa del Sol industrial development area. The Albuquerque Regional Economic Alliance (AREA) played a pivotal role in facilitating Ebon Solar's decision, providing extensive support throughout the site selection process.
Don Tarry, president and CEO of electric utility PNM and the 2024 AREA Board Chair, expressed enthusiasm for the project, highlighting its alignment with PNM's sustainability goals and the positive economic impact on the community.
Addressing Supply Chain Gaps
Ebon Solar's investment addresses a critical gap in the US solar panel supply chain. While module assembly plants have been rapidly expanding across the country, with a 71% increase in capacity during the first quarter of 2024, there has been a pressing need for domestic cell manufacturing capabilities.
Judy Cai, CEO of Ebon Solar, emphasized the company's commitment to sustainable innovation and cited New Mexico's abundant solar resources, favorable renewable energy policies, and skilled workforce as key factors in choosing Albuquerque for their investment.
Government Support for Solar Manufacturing
The announcement comes amid increased federal support for the solar industry. Recently, President Joe Biden more than doubled the tariff-free import quota for overseas-made solar cells from 5 gigawatts (GW) to 12.5 GW. This move aims to support US panel manufacturers while the domestic cell production capacity ramps up.
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), praised the decision, stating that it provides a crucial bridge for module producers while the US progresses in solar cell manufacturing.
Challenges and Opportunities
Despite the positive developments in solar manufacturing, the renewable energy sector faces some headwinds. A recent Financial Times report highlighted delays and cancellations of several Inflation Reduction Act (IRA)-driven projects, particularly in the battery industry, due to an electric vehicle market slowdown.
However, the solar cell manufacturing segment appears to be gaining momentum, with Ebon Solar's New Mexico facility serving as a prime example of the industry's growth potential.
As the US continues to invest in renewable energy infrastructure, projects like Ebon Solar's New Mexico facility are expected to play a key role in strengthening the domestic solar supply chain and advancing the country's clean energy goals.