Japan’s solar specialist TOYO Co., Ltd (NASDAQ: TOYO) was shining bright on Tuesday after revealing that it had secured a US$150-million-dollar supply contract with a “prominent solar module manufacturer.”
The newly announced solar cell supply deal made the stock soar on the Nasdaq, rising by over 86 per cent. The unnamed customer will use TOYO’s product for solar module production in India and the United States.
“This contract marks a major milestone for positioning TOYO as a key supplier in the solar energy market,” Chairman and CEO, Junsei Ryu, said in a company press release.
TOYO was founded in Tokyo two years ago. It is headquartered in Japan and has established its manufacturing operations in Vietnam. As far as its product goes, TOYO boasts that its solar cells perform well in low-light conditions, are immune to light-induced degradation and have high energy conversion efficiency.
TOYO is one of multiple Japanese companies involved in the solar industry. Other notable operators include Renewable Japan Co Ltd (TYO: 9522), the solar subsidiary of Kyocera Corp (OTCMKTS: KYOCY) and Panasonic Holdings Corp (OTCMKTS: PCRFF).
TOYO’s solar cells. Image credit: TOYO Solar
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TOYO acquires Texas solar company
In Houston, TOYO just agreed to take over the local operator Solar Plus Technology Texas LLC. It will obtain a newly leased 567,000-square-foot manufacturing facility through the acquisition.
Production will commence at the plant mid-way through next year with a steady ramp-up planned for the remainder of the decade. TOYO is making an initial contribution of about US$20 million to get the ball rolling.
“We are confident that our expansion in the U.S. will effectively deliver a comprehensive solar technology solution, addressing bottlenecks for developers, meeting local content requirements for U.S. solar projects, and enhancing TOYO’s competitive advantage,” Ryu said.
TOYO also agreed to set up a production facility in Ethiopia last month. Manufacturing will begin by the end of Q1, 2025.
The Japanese solar cell developer went public in July.
Congratulations to TOYO Solar on @Nasdaq market celebration and strong first earnings this week. Big things coming as they build their 2GW factory in 🇺🇸 this fall. $TOYO pic.twitter.com/9iHYmHCT1C
— Crocker Coulson (@crockercoulson) August 23, 2024
rowan@mugglehead.com
