The Toledo area has won another big investment in the international competition for alternative energy technology.
Tempe, Ariz.-based First Solar Inc. announced Thursday plans for a $270 million research and development center in Perrysburg Township near its existing solar module manufacturing plant. A spokesman said 200 new jobs will be created between the research facility and a previously announced plan to expand manufacturing capacity in northwest Ohio.
The publicly traded solar giant says the new R&D complex will help the company fast-track the development of solar module production and assist in process improvements. Pending regulatory approvals, it is expected to open in 2024.
First Solar develops and produces advanced thin film photovoltaics for commercial and residential users. It is one of America’s largest solar-module makers, operating in an industry dominated by players headquartered outside the United States.
The company has announced more than $1.1 billion in new northwest Ohio plant and research investments in a little more than a year.
In late August, First Solar said it would spend $185 million to grow production capacity across all of its northwest Ohio manufacturing facilities — including the Perrysburg Township location, its Lake Township facility, and a third $680 million facility under construction since last year, adjacent to the existing Lake Township plant.
In northwest Ohio, the company will add about 100 jobs for the new R&D facility, and about 100 more manufacturing jobs in the next couple years, spokesman Reuven Proenca said. He said First Solar executives are still working through the details of the $185 manufacturing expansion.
The company also recently announced plans to build a $1 billion panel manufacturing facility somewhere in the southeastern United States.
The big investments came in response to the August passage of the Inflation Reduction Act, which provided big federal incentives for clean energy, including solar power manufacturing. Company officials as recently as the summer had complained of a lack of government support for U.S. solar manufacturing.
The new R&D center will have a pilot production line to test manufacturing processes and free up space for commercial production at its main manufacturing plant in Perrysburg Township that currently hosts a pilot line, the company said in a news release.
“With a record shipment backlog and consistent demand for our modules, we face the twin challenges of optimizing existing and planned production capacity to deliver on our commitments, while ensuring that our technology roadmap does not lose momentum,” First Solar CEO Mark Widmar said.
The new center will span 1.3 million square feet and allow the current manufacturing plant in Perrysburg Township to be dedicated to production, the company said.
The $270 million investment will add to the $1.5 billion that First Solar has already spent on R&D.
“Quite frankly, this is a company that can do projects anywhere on the globe, and we're delighted they have chosen to expand their footprint in Perrysburg Township," said Robert Mack, chairman of the township trustees.
The investment and related jobs would be a “windfall” for the township’s school district and boost an already robust industrial base. He said he expected the company to soon pursue local tax incentives for the project via the township and Wood County.
Thursday’s announcement is the latest in a line of alternative-energy wins for Toledo and Ohioans.
Last month General Motors announced it would spend $760 million to transition the former Toledo Transmission plant, now called Toledo Propulsion Systems, from production of vehicle transmissions to production of EV drive units.
That commitment retains about 1,500 jobs at the plant over the next several years as GM, like other automakers, accelerates away from traditional gas-powered vehicles to EVs.
Honda also made news this month with plans to spend $4.2 billion total to restructure its factories around Marysville to add EV production and build a state-of-the-art EV battery plant in Fayette County in a joint venture with LG Energy Solution of South Korea. Combined the Honda investments are expected to create about 2,500 jobs.
LG Energy Solution is the same company working with GM to make batteries at the former Lordstown Assembly Plant in Warren, Ohio.
Also, local union and economic development officials are keeping an eye on tentative plans by Stellantis to build a third EV battery plant in the United States. Stellantis is the automaker formed by the 2021 merger between FCA (Fiat Chrysler) and the PSA Group (Peugeot).
First Published October 27, 2022, 8:16 p.m.
