TOYO launches 2GW solar cell plant in Ethiopia to strengthen its supply chain
Japanese solar solutions company TOYO has unveiled its ambitious project to build a state-of-the-art solar cell plant in Hawassa, Ethiopia, with a planned annual capacity of 2 GW. Announced in a press release on October 14, the $60 million project, funded by the company’s internal resources and advance payments, benefits from Ethiopia’s attractive investment policies and stable hydropower supply. Construction will begin in November, with production expected by the end of March 2025.
A strategy of diversification and global growth for TOYO
According to Junsei Ryu, TOYO’s CEO, the Ethiopian project represents a key step in the company’s strategy to diversify and strengthen its solar supply chain. It will help meet the growing needs of the U.S. market, including a planned solar module factory in the U.S.. TOYO sees the project as an opportunity for rapid growth in the global solar industry, while further integrating the African continent into the renewable energy value chain.
Africa: an emerging player but lagging behind in the production of clean technologies
TOYO’s project in Ethiopia is part of a recent trend where several African countries are starting to get more involved in the renewable energy value chain. In September 2024, Egypt signed an agreement to establish an N-type solar cell plant with an identical capacity of 2 GW. However, despite some notable initiatives, Africa remains behind in the industrial sector in clean technology manufacturing, as evidenced by the International Energy Agency’s May 2023 report, which did not mention the African continent in its clean energy technology overview.
Conclusion
With the launch of this solar cell factory, TOYO is not only contributing to the growth of renewable energy in Africa but also to the global diversification of its supply chain. This initiative reflects the growing recognition of Africa’s industrial potential in the clean energy sector, although the continent still has a long way to go to become a major player in the production of green technologies.
