The projected investment amounts to approximately USD 357 million and the company expects to complete the development within 20 months, with the start of pilot production once the construction, engineering and permitting stage is completed.
The project will be located next to the solar module plant that TOYO already owns in Houston, which will allow the creation of an integrated manufacturing center in the United States.
The Inflation Reduction Act (IRA) is one of the major drivers behind the new wave of solar manufacturing in the United States.
According to information released by TOYO, domestic manufacturing of solar cells may qualify for direct production tax credits under Section 45X, with an incentive of USD 0.04 per watt for locally produced cells.
For a capacity of 1.5 GW, this could represent a potential annual benefit of up to USD 60 million in production tax credits.
This point is crucial to explaining why companies are looking to move beyond module assembly and into cell manufacturing.
The more integrated production is within the country, the greater the possibility of capturing incentives, complying with national content rules, and positioning oneself better in front of developers seeking projects eligible for federal benefits.
In this context, TOYO's announcement reflects a broader trend: photovoltaic brands no longer compete solely on price, efficiency, or global scale, but also on their ability to manufacture within the United States and offer a local, traceable supply chain aligned with the new demands of the market.
From assembling modules to manufacturing cells: the new industrial frontier
Over the past few years, several companies have announced solar module plants in the United States. However, the new competitive advantage is beginning to shift towards the local manufacturing of solar cells, one of the most strategic links in the photovoltaic chain.
TOYO is targeting precisely that segment with a 1.5 GW HJT cell plant, which will be located next to its existing module operation in Houston.
The decision aims to integrate more stages of production within the country, reduce dependence on external supplies, and improve the company's positioning with customers who need to meet national content requirements.
Producing modules in the United States can be a first step. But producing cells locally allows progress toward a more complete supply chain, with a greater capacity to capture incentives and respond to the regulatory demands of the US market.
Houston as an integrated solar production hub
One of the central points of the project is the joint location of the new cell plant with the module plant that TOYO already owns in the Houston metropolitan area.
This decision will reduce internal logistics costs, shorten production cycles, and optimize the use of existing infrastructure.
The company expects to achieve operational synergies by connecting cell processing with the manufacturing of finished modules in the United States.
Furthermore, using a location already associated with your industrial platform allows you to mitigate development risks, streamline local permitting processes, and leverage your regional management team and workforce base.
The new plant would generate approximately 400 direct full-time manufacturing jobs in the Houston metropolitan area, in addition to about 1,200 additional jobs in the regional supply chain.
FEOC compliance and supply chain isolation
Another central focus of the announcement is FEOC compliance, an increasingly relevant factor for manufacturers, developers, and buyers in the US market.
TOYO states that the new factory is part of a long-term strategy to build a domestic manufacturing platform aligned with evolving compliance standards in the United States.
The decision also aims to improve the isolation of the supply chain, in a context of trade tensions, controls on the origin of components and the need to reduce exposure to certain geographies.
For solar manufacturers, having local production is no longer just an industrial decision. It's a commercial, regulatory, and financial tool.
In that sense, the Houston plant seeks to position TOYO as a supplier with a greater capacity to respond to developers who demand traceability, reliability and regulatory compliance.
HJT: High-efficiency technology to compete in the United States
The plant will be dedicated to the production of HJT solar cells, a technology that TOYO considers key to the US market.
The heterojunction combines high conversion efficiencies, low annual degradation, better thermal performance, and high bifaciality.
These attributes are especially relevant in the United States, where infrastructure, land, installation, labor, and development costs can be high.
In that context, a more efficient cell allows for generating more energy per installed surface area and improving the profitability of solar projects.
TOYO also believes that HJT technology can serve as a platform for integrating next-generation perovskite solar cells in the future, with the aim of moving towards higher levels of efficiency.
An investment of USD 357 million and 20 months of development
The expansion represents a projected capital investment of approximately USD 357 million.
Engineering, facility design, and procurement planning are already underway. The company anticipates that the project will be fully completed and initial pilot production will begin within 20 months.
The implementation will be carried out in structured phases to ensure compliance with local regulatory frameworks and permit deadlines.
TOYO plans to finance the expansion through a capital structure that combines internal cash flow, non-dilutive project financing, potential strategic alliances, and equity financing that generates value.
From polysilicon to module: the goal of vertical integration
TOYO presented the expansion as part of a broader vertical integration strategy.
The company seeks to position itself as an integrated global manufacturer, with a presence in different stages of the chain: initial production of wafers and silicon, intermediate manufacturing of cells, final production of modules and, potentially, other phases of the solar chain.
The Houston plant thus becomes a key piece in strengthening its industrial platform in the United States.
By producing cells alongside modules, the company is moving closer to a more competitive model in the face of developers, utilities and large buyers who prioritize national content, traceability and security of supply.
A signal for the entire solar industry
TOYO's move confirms that solar manufacturing in the United States is entering a new stage.
Simply assembling modules domestically is no longer enough. Competition is shifting towards greater integration of the production chain, especially in solar cells.
The $357 million investment and the projected capacity of 1.5 GW show how brands are beginning to adapt their industrial decisions to the new US competitive framework.
The equation combines tax incentives, national content requirements, FEOC compliance, technological efficiency, and security of supply.
In this scenario, TOYO seeks to position itself as a competitive national partner in high-efficiency solar technology, with an integrated platform in Houston and a clear commitment to the local manufacturing of HJT cells.
The strategy reflects a broader transformation: the global solar industry is reshaping its value chains, and the United States is seeking to consolidate itself not only as one of the major demand markets, but also as a photovoltaic manufacturing hub.