First Solar CEO says tariff exemptions threaten U.S. efforts to ramp up domestic solar manufacturing
A worker applies tape to a solar panel at First Solar in Perrysburg, Ohio July 8, 2022.
Megan Jelinger | Reuters
A flood of foreign solar components threatens efforts to build a domestic manufacturing base in the U.S. to support the clean energy transition, according to First Solar CEO Mark Widmar.
In an interview with CNBC, Widmar said the U.S. should close tariff exemptions that allow cheap components into the U.S. market. First Solar is the largest manufacturer of solar panels in the U.S., focused on large, utility-scale projects.
“All we want is to be able to compete on our own merits and to the extent there is dumping happening in the U.S. market, it should be addressed,” Widmar said. “Once it is addressed, we want it to be enforced.”
A common type of solar panel used in the U.S. is excluded from Section 201 tariffs designed to protect domestic solar manufacturing, and a moratorium on tariffs against solar components imported from several Southeast Asian nations is in place. While some industry stakeholders have supported these exemptions to help scale up solar power capacity in the U.S., Widmar said the carveouts are undermining the goals of the Inflation Reduction Act.
Exploiting a loophole
“The intent of what we’re trying to do – to create this domestic industry that can enable long-term energy independence and security to achieve climate change goals and to enable cycles of innovation by having domestic capabilities – is all at risk,” Widmar said. “It’s unfortunate but that’s largely what’s happening.”
The Biden administration in 2022 extended Section 201 tariffs originally imposed by the Trump administration, but imported bifacial solar panels, which absorb light on both sides, are excluded from the duties.
In an investigation concluded last August, the U.S. Commerce Department found that some Chinese companies were skirting anti-dumping protections in the U.S. by shipping solar cells and modules through countries such as Cambodia, Malaysia, Thailand and Vietnam.
But a decision by President Joe Biden in June 2022 to exempt those same Southeast Asian nations from solar tariffs for two years means penalties are not being enforced against some Chinese producers despite the Commerce Department’s conclusions.
Biden vetoed legislation last spring that would have imposed tariffs on solar components from Cambodia, Malaysia and Thailand. In his veto message, the president described the exemption as a “temporary bridge” that is needed to help expand solar capacity in the U.S.
Though the exemption expires this June, Widmar said 30 to 40 gigawatts of excess product has made its way in to the U.S. market, which is equivalent to almost a full year of consumption.
“What this is doing is it’s not allowing these domestic companies to scale,” Widmar said.
The First Solar CEO said he is also worried that Chinese companies will exploit IRA tax credits, particularly the 7 cents per watt for solar modules, to set up assembly plants in the U.S. that do not move the ball forward in terms of technological innovation.
“What you’ve done is you’ve given the Chinese the opportunity to exploit the Inflation Reduction Act,” Widmar said.
A White House spokesperson wasn’t immediately available to comment.
A buffer against volatility
First Solar is largely insulated from the current market dynamics because the company is booked solid through at least 2026, Widmar said. The company has intentionally overbooked to provide a buffer against the volatility in the solar market, he said.
While the residential solar sector has been walloped by high interest rates, First Solar has outperformed with its focus on utility-scale projects. The Invesco Solar ETF (TAN) has fallen than 18% this year, while First Solar’s stock is down just over 6%.
First Solar shares over the past year.
Electricity demand growth on the grid was largely flat up until 2020, but has now hit an inflection point with power needs expected to grow substantially through the end of this decade, Widmar said. Large data centers are using more power due to the emergence of artificial intelligence, and other factors such as cryptocurrencies, the electrification of vehicles, and the onshoring of manufacturing in the U.S. are contributing to demand growth, he said.
“That drives need for hundreds of megawatts for solar power plants,” Widmar said. “That means you need more utility-scale generation and you couple that with the continued ramp down of fossil fuels, coal power plants and even nuclear.”
First Solar operates three factories in Ohio with two more plants slated to open in Louisiana and Alabama. The company sources its material in the U.S. and is not dependent on Chinese supply chains, Widmar said.
The CEO said domestic manufacturing provides certainty in a world where supply chains are being disrupted by geopolitical tensions, such as those in the Red Sea, and uncertain trade policies.
“The best way I can provide them certainty is to manufacture in the U.S. with a U.S. supply chain,” he said.
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Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec
JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.
JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.
The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.
In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.
In December 2023, Baidu and Geely unveiled a second model called the JiYue 07. It was born from JIDU’s ROBO-02 concept, which debuted in 2023 and was designed to compete against the Tesla Model 3 in China.
The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:
JiYue’s new ROBO X EV is available for pre-order now
JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.
When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:
For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.
Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).
The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.
Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.
Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.
What do you think? Will people be talking about the ROBO X for the next 20 years?
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes the launch of the Lectric XPedition 2.0, Yamaha e-bikes pulling out of North America, LiveWire unveils an electric scooter concept, PNY readying its cargo e-scooters for pilot testing, Royal Enfield’s first electric motorcycle, and more.
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Crude oil futures were on pace Friday for loss for the week, as a supply gut and a strong dollar depresses the market.
U.S. crude oil is down more than 2% this week, while Brent has shed nearly 2%.
Here are Friday’s energy prices:
- West Texas Intermediate December contract: $68.56 per barrel, down 14 cents, or 0.2%. Year to date, U.S. crude oil has shed about 4%.
- Brent January contract: $72.36 per barrel, down 20 cents, or 0.28%. Year to date, the global benchmark has lost nearly 6%.
- RBOB Gasoline December contract: $1.99 per gallon, up 0.46%. Year to date, gasoline has fallen more than 1%.
- Natural Gas December contract: $2.70 per thousand cubic feet, down 2.98%. Year to date, gas has gained more than 4%.
The International Energy Agency has forecast a surplus of more than 1 million barrels per day in 2025 on robust production in the U.S. OPEC revised down its demand forecast for the fourth consecutive month as demand in China remains soft.
A strong dollar also hangs over the market, as the greenback has surged in the wake of President-elect Donald Trump’s election victory.
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