US Solar Cell Producer ES Foundry Signs Gigawatt-Level Contract [SMM Analysis]

US solar cell producer ES Foundry has signed its first multi-gigawatt, multi-year contract with a leading PV module manufacturer. ES Foundry's manufacturing facility in South Carolina began production this month, with the first shipments to customers expected in February. With US-made solar cells, customers can unlock ITC benefits, streamline compliance with IRS safe harbor guidelines, and secure a reliable supply chain solution.

ES Foundry is currently producing PERC solar cells, which the company states qualify for US localisation incentives. The initial annual capacity is 1 GW, which is expected to increase to 3 GW by Q3 2025. The company plans to add TOPCon and heterojunction (HJT) capacity in future expansions.

In 2022, US PV module capacity was less than 7 GW, but it has now grown to over 50 GW. At full capacity, the US can produce enough PV modules to meet nearly all domestic demand. Demand is expected to reach approximately 40 GW in 2024, followed by an annual average demand of at least 43 GW from 2025 to 2029. However, due to the complexity and high costs of the process, the adoption of solar cell manufacturing has been slower. Current US domestic solar cell capacity is less than 5 GW. By 2025, US domestic solar cell capacity is expected to gradually come online.