Hanwha Solutions has begun commercial production of solar cells at its factory in Cartersville, Georgia. The company is shifting from a business structure centered on module assembly to an 'integrated production system' that manufactures key components in-house, laying a new foundation for growth in its North American business.

Commercial Cell Production Begins in June... "Largest Solar Cell Manufacturing Facility in the U.S."

According to Canary Media, a U.S. energy trade publication, Hanwha Solutions' Q CELLS division began commercial production of silicon solar cells at its Cartersville, Georgia plant in June. Canary Media described the facility as the largest operating solar cell manufacturing plant in the United States.

Solar cells are core components that convert sunlight into electricity, and multiple cells are connected to produce solar modules.

U.S. Cell Production Capacity Expected to More Than Double Existing Levels on a Simple Aggregate Basis

While solar module manufacturing facilities have rapidly increased in the United States recently, cell production infrastructure remains relatively insufficient, leading to heavy reliance on overseas sourcing.

According to Reuters, U.S. solar module production capacity reaches approximately 60 GW (gigawatts) annually, but cell production capacity stands at only 3.2 GW.

Once the Cartersville plant secures an annual cell production capacity of 3.3 GW, total U.S. cell production capacity could exceed twice the existing level on a simple aggregate basis.

Ingots, Wafers, Cells, and Modules All Under One Roof... "First Vertically Integrated Facility in the U.S."

Q CELLS expects that once the Cartersville plant is fully operational, it will be able to produce 3.3 GW each of ingots, wafers, and cells annually, along with 3.5 GW of solar modules per year.

An ingot is a material made by processing polysilicon for solar use into a cylindrical shape, which is then sliced thinly into wafers and processed to make cells. Previously, it was common practice to source cells or wafers externally and then assemble modules at U.S. factories.

The company explained that the Cartersville plant is the first and only vertically integrated solar manufacturing facility in the United States, producing ingots, wafers, cells, and finished modules all in one location.

Linked with Dalton Plant... Module Capacity to Expand to 8.6 GW by Q3 2026

The Cartersville plant is also integrated with the existing Dalton, Georgia factory. Q CELLS plans to combine the solar module production capacities of both plants to reach 8.6 GW annually by the end of the third quarter of 2026. This scale is equivalent to the solar capacity needed to supply electricity to approximately 1.3 million U.S. households for one year.

Local Production Tax Benefits... Expected Improvement in Profitability Structure

The operation of the Cartersville plant is expected to impact not only production volume but also the profitability structure of Hanwha Solutions' U.S. business.

Wafers, cells, and modules produced in the United States may qualify for the Advanced Manufacturing Production Credit, which is tied to domestic production volume. Additionally, it may be advantageous for solar power operators using U.S.-made components to receive additional tax credits if they meet relevant conditions.

If Q CELLS supplies both cells and modules, it will also help customers increase their share of local procurement. As plant production volumes and utilization rates increase, both product sales and tax benefits from local production are likely to expand together. However, the actual scale of tax credits may vary depending on production items, volumes, applicable periods, and detailed requirements.

Key Future Watch Points: Yield Stabilization and Utilization Rate

The module production line at the Cartersville plant is already in operation, and Q CELLS has set a goal of sequentially expanding ingot and wafer production facilities alongside cells to reach the planned production capacity by the third quarter of 2026.

The market is expected to view the Cartersville plant's cell production volume, yield, and utilization rate as key indicators for Hanwha Solutions' North American business going forward. Cell manufacturing involves more complex processes than module assembly, meaning that stabilizing yield rates and managing costs during early production could directly impact profitability.

Once cell production stabilizes, Hanwha Solutions can expand its position as a supplier of both key solar components and finished products in the United States. The ability to reduce reliance on external cell sourcing and directly manage production schedules and inventory is also cited as a factor that will enhance business stability.

Hanwha Solutions' U.S. solar business has entered a phase of expanding its production scope beyond modules to include ingots, wafers, and cells. How quickly the Cartersville plant reaches its planned production capacity and translates that into actual profitability improvements is expected to be a key watchpoint for its North American business going forward.