In a strategic move for the United States (U.S.) solar industry, electric vehicles (EVs) are set to benefit from cleaner energy as Canadian solar panel maker Heliene and India’s solar cell manufacturer Premier Energies have announced a joint venture to construct an advanced solar cell plant on U.S. soil.

The new plant is aimed to be located near Minneapolis to address the current shortage of domestic solar cell manufacturing capacity in the U.S. Moreover, the joint venture will create a production plant with an annual capacity of 1 gigawatt (GW) of N-Type solar cells. This substantial output is intended to meet both Heliene’s and Premier’s U.S. solar cell requirements.

Under the terms of the joint venture, Heliene will be responsible for construction, project management, human resources, financial management, plant operations, and supply chain logistics. Premier Energies will contribute its expertise in cell technology engineering, manufacturing processes, equipment selection, and raw material supply agreements.

“With demand for U.S.-made modules and components growing, now is the perfect time to embark on the next phase of our partnership with this joint venture,” said Martin Pochtaruk, CEO of Heliene. “Our new cell manufacturing facility will not only expand the footprint and impact of each of our companies, but it will also establish us as true leaders in the effort to friend-shore up the U.S. solar manufacturing supply chain.”

Notably, the decision to invest in U.S. solar manufacturing is a direct response to the incentives and tax credits introduced by President Biden’s Inflation Reduction Act (IRA) of 2022. These incentives have created a favorable environment for domestic clean energy manufacturing, encouraging companies to invest in U.S.-based production plants.

Interestingly, the new partnership builds on an existing relationship between the two companies, with Heliene currently sourcing solar cells from Premier’s Hyderabad plant for use in its module manufacturing plant in Mountain Iron, Minnesota.

The new plant is projected to start production in Q2 2026. Cells produced at this plant will not only supply the companies’ needs but also benefit solar developers looking to tap into the U.S. Treasury Department’s 10% Domestic Content Bonus Investment Tax Credit, which is in addition to the 30% IRA tax credit for renewable energy factories.

With this joint venture strengthening the U.S. solar industry and reducing dependence on imported solar components, the demand for solar energy will continue to grow as this new manufacturing capacity is set to contribute the country’s renewable energy goals.

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