Solar solutions provider TOYO Corporation has acquired Solar Plus Technology Texas, a module manufacturing facility in Houston, Texas.

TOYO Solar, a subsidiary of TOYO, will oversee the facility’s operations, with a $19.96 million capital contribution earmarked for Phase 1 construction.

The move will enable TOYO to accelerate its “made-in-America” solar module production plans, with an initial capacity of 2.5 GW and a roadmap to expand to 6.5 GW by 2029.

The newly leased facility spans 567,140 square feet, with equipment expected to arrive by early 2025.

The first gigawatt of production is slated to commence by mid-2025, with the facility reaching its 2.5 GW capacity by the end of the year.

Junsei Ryu, Chairman and CEO of TOYO, said the acquisition in the U.S. complements its facilities in Vietnam and Ethiopia. TOYO plans to leverage the expertise of its sister company, Vietnam Sunergy, a solar manufacturer, to ensure manufacturing excellence and capitalize on established customer relationships.

The acquisition is part of TOYO’s broader strategy to expand its footprint in key markets and strengthen its position as a full-service solar solutions provider, spanning upstream silicon and wafer production to downstream photovoltaic module manufacturing.

Solar module manufacturing capacity in the U.S. increased by over 10 GW to 31.3 GW in the second quarter of 2024, according to a report by the Solar Energy Industries Association and Wood Mackenzie.

The U.S. increased the volume of tariff-free solar cell imports in August this year to help domestic solar module manufacturers. The tariff-rate quota of imported solar cells would increase to 12.5 GW from 5 GW. The tariff, however, will remain at 14.25%.

Earlier this year, the U.S. announced it would bring back bifacial solar modules under Section 201 tariffs as part of the clampdown on cheap clean energy technology entering its shores from China.