South Korean company Qcells revealed a substantial partnership with Microsoft (MSFT.O), unveiling plans to supply 12 gigawatts of solar panels manufactured in the United States. This extensive agreement, considered one of the most significant in its category, is slated to extend until 2032.
This agreement not only secures a significant and consistent demand for solar panels but also plays a crucial role in supporting the newly established $2.5 billion Qcells factory in Georgia. Microsoft, in its effort to address supply chain vulnerabilities, has found a reliable panel supplier through this deal, aligning with its goal of achieving 100% renewable energy usage for its operations by 2025.
Bobby Hollis, Microsoft’s vice president for energy, emphasized the strategic and thoughtful approach required to meet renewable energy goals in a competitive environment. The extended agreement, building upon the initial 2.5-gigawatt contract signed a year ago, underscores Microsoft’s commitment to increasing its overall solar panel capacity to 12 gigawatts. This level of capacity can provide energy for approximately 1.8 million households.
Qcells sees this partnership as an opportunity to establish a solar supply chain within the United States, positioning itself as a competitor to China in the industry. The comprehensive supply chain includes the production of silicon ingots, wafers, cells, and solar modules. Currently, many U.S.-assembled solar panels rely on components manufactured in Asia, benefiting from the price reductions observed in the past year. President Joe Biden’s Inflation Reduction Act incentives aim to strengthen domestic production of clean energy components and reduce dependence on goods produced overseas.
Jihyun Kim, an executive vice president at Qcells, a division of Hanwha Solutions Corp (009830. KS), highlighted that their partnership with Microsoft uniquely positions them to build the full supply chain within the United States. This collaboration is seen as a significant step towards enhancing domestic capabilities in clean energy production.
