Written by Wu Mingzhe

CSI Solar Co. Ltd., a prominent subsidiary of Canadian Solar Inc., has recently entered into a significant investment agreement with the municipal government of Hohhot, located in Inner Mongolia, China. Under this multi-year agreement, CSI Solar will invest in and carry out its planned capacity expansion and vertical integration initiatives. This strategic move solidifies CSI Solar’s position as a leading player in the solar industry, positioning them to meet the growing demand for renewable energy.

As part of the initial phase of investment, CSI Solar plans to establish various manufacturing capacities, including 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. The production of ingot capacity is expected to commence in March 2024, while the remaining capacities are projected to begin production in the latter half of the same year. Overall, the capital expenditures for this initial phase are anticipated to be approximately $1.6 billion, with the majority of investments occurring in 2024.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, highlights the importance of this investment in meeting the increasing demand from customers. By building new solar manufacturing capacity equipped with cutting-edge technologies, CSI Solar aims to ensure their ability to supply renewable energy products while maintaining top-quality standards. This move also reflects the company’s commitment to sustainability and reducing the carbon footprint associated with their supply chain.

One of the key factors influencing the decision to invest in Hohhot, Inner Mongolia, is the region’s abundant supply of polysilicon and quartzite, essential materials for solar product manufacturing. Additionally, Inner Mongolia boasts ample wind and solar resources, offering ideal conditions for renewable energy production. As the local renewable energy industry continues to grow, CSI Solar is well-positioned to tap into this expanding market, ultimately contributing to reducing the environmental impact of the entire solar supply chain.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.