Acquired by First Solar Inc. up 1.5% on Friday to finish buying and selling with a market capitalization of $21.15 billion. The transfer greater allowed the Arizona-based firm to overhaul Sungrow Power Supply Co., which noticed its shares fall 4.2% on Friday in Shenzhen to place its worth at about $20.85 billion.
This is the primary time since 2018 {that a} Chinese firm will not be probably the most useful photo voltaic tools maker. The nation dominates the worldwide manufacturing of panels, and controls greater than 80% of each step of the provision chain.
But constructing factories in China has come at a value as capability outstrips international demand, resulting in decrease costs and shrinking revenue margins. Longi Green Energy Technology Co., one other main Chinese producer, posted a web lack of 2.35 billion yuan ($325 million) within the first quarter after incomes a revenue of three.64 billion yuan in the identical that point in 2023.
Chinese photo voltaic giants have additionally more and more discovered themselves within the geopolitical crosshairs, with leaders from the US and Germany criticizing their extra capability for impeding the event of different provide chains. elements of the world. President Joe Biden this week introduced greater tariffs on Chinese photo voltaic panels and different measures designed to bolster US producers.
First Solar, the most important panel producer within the US, was a major beneficiary of the actions. It sells its panels within the US, the place costs are practically triple the worldwide common because of tariffs towards Chinese merchandise. And its enlargement plans can be sponsored by the Inflation Reduction Act of the Biden administration. Of course, market capitalization is only one technique to measure firms. By most different metrics, together with the essential one in every of producing sufficient clear power to fight local weather change, First Solar has a methods to go along with its Chinese counterparts. It will produce 12 gigawatts of panels by 2023, in comparison with 79 gigawatts for Shanghai-based Jinko Solar Co.
