Trina Solar announced on Tuesday it has signed an investment agreement with the government of Shifang City, Sichuan province of China to build a production base for silicon ingots and related facilities with an annual capacity of 13 gigawatts (GW).
The total investment for the project is estimated to be around RMB 5.3 billion, with Trina Solar contributing approximately RMB 4.3 billion.
The construction period for the project is expected to be 12 months, after which Trina Solar will be responsible for the subsequent operations. The company aims to leverage the local policies and industrial advantages of Shifang City to optimize its upstream layout and drive business growth.
This is not the first time Trina Solar has announced a project in Shifang City.
In May of this year, the company signed an agreement with the city government to build a production base for ingots and related facilities with an annual capacity of 25 GW. The total investment for that project was approximately RMB 10.7 billion, with Trina Solar contributing about RMB 8.7 billion and the state-owned company in Shifang contributing about RMB 2 billion.
Ambitious expansion plans
The solar industry is currently experiencing a period of significant capacity expansion, and Trina Solar, as a leading company, is accelerating its pace of expansion.
Last month, the company initiated a new round of fundraising, with plans to raise up to RMB 10.9 billion through the issuance of shares to specific investors. The funds raised will be used for a 10 GW high-efficiency solar cell project in Huai’an, a 10 GW high-efficiency solar cell and module project in Dongtai, as well as to supplement working capital.
Earlier this year, the company successfully raised RMB 8.865 billion through convertible bond issuance to fund a 35 GW crystal pulling project in Xining, Qinghai, and for working capital and loan repayment.
Trina Solar acknowledges that the company’s current projects require substantial investment, which may put pressure on its cash flow. However, the company plans to address these funding needs through internal resources and self-financing.
Vertically-integrated manufacturing powerhouse
As a major player in the solar industry, Trina Solar is deeply involved in various aspects of the sector, including solar products, solar systems, and smart energy solutions.
The company has shipped products to over 150 countries and regions worldwide, with a cumulative shipment of over 130 GW by the end of 2022. In the first quarter of this year alone, Trina Solar shipped more than 10 GW of modules and over 2 GW of distributed systems, achieving significant year-on-year growth. The company aims to achieve a module shipment target of 65 GW in 2023.
It is expected that by the end of 2023, the company’s cell production capacity will reach 75 GW, with n-type cell production capacity exceeding 40 GW, and module production capacity reaching 95 GW.
In terms of new capacity layout, Trina Solar is mainly focused on n-type technology and large-size modules, while also striving to build an integrated industrial chain.
In June 2022, the company announced plans to build a zero-carbon industrial park in Qinghai, which will include production lines for industrial silicon (300,000 tons per year), high-purity polysilicon (150,000 tons per year), mono silicon (35 GW per year), wafer (10 GW per year), cells (10 GW per year), modules (10 GW per year), and auxiliary materials for modules (15 GW per year).
The first phase of the project is scheduled to be completed by the end of 2023, with the second phase expected to be completed by the end of 2025.
In February of this year, the company successfully produced its first 210+N mono ingot at its Qinghai base.
Trina Solar’s n-type TOPCon cell has achieved an efficiency of 25.3% in mass production, and the company has reserves in other cell technologies such as HJT, IBC, and perovskite.
In addition to upstream productions, Trina Solar is actively expanding into downstream areas such as power plant development and energy storage systems. The company’s joint venture projects, including a 10 GWh battery cell production line and a 2 GWh module production line, have reached full production capacity.
In 2022, Trina Solar’s energy storage system shipments in China exceeded 1.5 GWh, with a global shipment volume close to 2 GWh, ranking fourth in China and sixth globally among energy storage integrators.
