OCI Holdings announced plans to establish an independent solar cell production facility at its U.S. subsidiary, Mission Solar Energy (MSE), investing $265 million to strengthen the domestic solar supply chain.

The South Korean company aims to begin commercial production of 1GW of solar cells in early 2026, scaling up to over 2GW later that year. The facility will utilize solar-grade polysilicon from OCI TerraSus, the firm's Malaysian subsidiary, which relies on hydropower to ensure compliance with the Uyghur Forced Labor Prevention Act (UFLPA) and the RE100 global renewable energy initiative.

With U.S. solar manufacturing struggling to meet demand, this investment comes at a critical time. A Bloomberg report indicates that current U.S. solar cell capacity is nearly 90% below necessary levels. The expansion will help bridge this gap while benefiting from Inflation Reduction Act (IRA) incentives, including the Advanced Manufacturing Production Credit (AMPC) and additional Investment Tax Credits (ITC) for projects using U.S.-made components.

Lee Woo-hyun, Chairman of OCI Holdings, stated, "The establishment of this new solar cell subsidiary marks the beginning of U.S.-produced solar cells made with OCI TerraSus' polysilicon, ensuring a clean and sustainable supply chain."

This move reinforces OCI Holdings' commitment to supporting renewable energy growth in North America and strengthening the domestic solar industry.