First Solar new US facility underpins US solar manufacturing expansion

First Solar

First Solar new US facility plans highlight the company’s confidence in sustained US solar demand and manufacturing growth. The US module producer will start production at the new plant in late 2026, ramping through 2027. As a result, First Solar new US facility strategy strengthens domestic capacity while responding to record sales and a deep project backlog.

Record volumes support First Solar new US facility decision

First Solar saw record third-quarter sales volumes of 5.3GW, up from 3GW a year earlier. The company grew quarterly revenue by 80pc to $1.6bn, driven mainly by higher module volumes sold to third parties. Therefore, the First Solar new US facility arrives on top of strong commercial momentum, not as a speculative bet.

However, near-term guidance reflects some demand and supply friction. First Solar cut its 2025 sales outlook to 16.7-17.4GW after terminating 6.6GW of bookings with BP Solar. The company also faced a temporary glass shortage at its Alabama plant, which reduced expected output. Even so, a contracted backlog of 53.7GW, valued at $16.4bn, underpins visibility for the First Solar new US facility and other expansions.

US capacity ramps while overseas output adjusts

First Solar continued to shift its production footprint toward the US during the quarter. Of the 3.6GW of modules produced, 2.5GW came from US facilities, despite the Alabama disruption. Meanwhile, the Louisiana plant moved slightly ahead of schedule, with qualification runs already started and first shipments expected in the fourth quarter.

The company trimmed production in Malaysia and Vietnam, reflecting lower demand after the BP Solar contract termination. This adjustment frees capacity and capital for higher-value domestic manufacturing, including the First Solar new US facility. As a result, First Solar is progressively aligning its manufacturing base with US policy support for local content and resilient solar supply chains.

Profitability strengthened alongside the operating shifts. Third-quarter profit rose to $456mn, up 33pc year on year, despite input challenges. The combination of robust margins, a long-dated backlog and policy tailwinds provides a solid financial platform to fund the new US plant and future technology upgrades.

The Metalnomist Commentary

First Solar’s latest move confirms that utility-scale solar manufacturing in the US is entering a scale-up phase, not just a reshoring experiment. The First Solar new US facility also illustrates how project cancellations and local bottlenecks can coexist with long-term growth in grid-scale solar demand. For metals and glass suppliers, the company’s deeper US footprint signals sustained structural demand for high-performance materials in North American solar value chains.