This is an interesting and relatively new player in the solar energy sector. Toyo Solar was founded only at the end of 2022, but the company has scaled its business exceptionally aggressively and subsequently listed on the US stock market.
The company’s majority shareholder is the Japanese publicly listed Abalance Corporation, which, following the June share issue, owns approximately 72% of Toyo’s shares through its subsidiaries. This means the company’s float is about 28%. Furthermore, if all warrants issued in June are exercised, Abalance’s ownership will be approximately 65% and the float approximately 35%. There are 46.8 million shares in total.
The timing of the listing was strongly linked to the US market: the Inflation Reduction Act, signed in August 2022, included approximately $400 billion in investments in clean energy, which created a huge demand spike. At the same time, the company wanted to respond to import restrictions in various countries by moving from external procurement of cells to in-house manufacturing and by strengthening its vertically integrated supply chain. The US stock market listing and the later Texas factory support the “American-made” strategy and meeting local content requirements for solar energy projects in the US.
Toyo is a vertically integrated operator that aims to cover the entire production chain from wafers to solar cells and further to finished solar panels (PV modules). Currently, the company has 2 GW of solar cell production capacity in Vietnam, a 4 GW factory in Ethiopia, and a 1 GW assembly plant in Houston, USA. From September 2026, Houston Phase 2 will increase capacity to 2 GW.
However, the most interesting part of the investment story relates to its ongoing conquest of the United States.
In early June, Toyo announced it would build a second, 1.5 GW production facility in the Houston area in Texas. The total value of the investment is approximately $357 million. The factory will be located on the same site as the current assembly plant.
At the same time, the company announced two new supply agreements for the US market, with a total value of $185.6 million.
The company launched its own 1 GW solar module factory in Houston in October 2025. This means that some of the solar panels sold in the US are already being assembled locally, although the cells used in them are still imported.
The US solar cell market is currently heavily protected against low-cost Chinese production through tariffs and other trade policy measures.
In addition, solar cells manufactured in the United States are covered by the Section 45X tax credit, which significantly improves the competitiveness of domestic production.
Section 45X (Advanced Manufacturing Production Credit) is part of the US Inflation Reduction Act. It provides the manufacturer with a tax credit for every solar industry component produced in the United States, such as solar cells and modules.
For solar cells, the credit has been $0.04 per watt produced. In practice, this means: 1 GW = 1 billion watts => $0.04 × 1 billion watts = $40 million per year. In other words, the new 1.5 GW US factory will receive $60 million per year in tax credits alone.
In Toyo’s case, I don’t think the market is yet fully pricing in the fact that the company is moving from mere module assembly to actual solar cell manufacturing in the United States. Cell production is currently one of the most valuable links in the solar industry in the US market, as domestic production qualifies for significant 45X tax credits.
However, the most interesting part of the whole thing are the figures below.
