Japanese solar cell manufacturer Toyo has announced it will construct a 2 GW solar cell factory in Ethiopia. Poised to provide duty-free solar components to a panel factory Toyo is planning in the U.S., the $60 million facility is expected to start production by Q1 2025.
Situated on a 31,500m² area of land in Hawassa, development works will commence in November 2024. A land lease agreement has already been signed, with up to 880 jobs expected to be created in manufacturing and engineering.
“Establishing this manufacturing plant is a key step in our strategic vision to diversify our supply chain and enhance our sourcing capabilities for solar solutions in the global market,” said Junsei Ryu, CEO of Toyo.
The move comes amid growing concerns over U.S. tariffs on solar panel components from Malaysia, Thailand and Cambodia as well as Vietnam, where Toyo currently produces its solar products. Serving as part of Toyo’s strategy to diversify its supply chain, Ethiopia is exempt from U.S. tariffs on double-sided solar panels.
