Announces $1.1B solar plant in the Bayou State; adds more demand for critical tellurium.

In a boost for American-made tellurium-based solar technology, First Solar Inc. has selected Louisiana as the location for a $1.1 billion manufacturing plant with the capacity to produce 3.5 gigawatts of the company's thin-film cadmium-telluride (CdTe) solar panels per year.

"We are pleased to partner with Louisiana as we lean into our commitment to creating enduring value for America by expanding our solar manufacturing footprint and the domestic value chains that enable it," said First Solar CEO Mark Widmar.

First Solar selected the Acadiana Regional Airport in Iberia Parish as the site to add to the company's rapidly expanding domestic solar manufacturing capacity.

"First Solar's selection of Iberia Parish for its newest solar panel production facility leaves no doubt that Louisiana is leading the global energy transition, and creating good-paying jobs as a result," said Louisiana Gov. John Bel Edwards. "This massive investment and the jobs it will create are a huge win for the people of Acadiana and the entire state. It is proof positive that Louisiana's 'all-of-the-above' approach to energy is growing and diversifying our economy."

First Solar expects the new plant will create 700 new direct manufacturing jobs in Louisiana.

"As we evaluated our options, Louisiana's ability to deliver the talent we need stood out, thanks to its extensive workforce development initiatives and the presence of academic institutions such as the University of Louisiana at Lafayette which now features a world-class solar energy lab," said Widmar.

First Solar stands out among the world's ten largest solar manufacturers as the only one headquartered in the United States and does not have any facilities in China. The company says its tellurium-based semiconductor allows it to avoid any dependence on Chinese crystalline silicon supply chains.

Demanding rare tellurium

The tellurium used in the panels to be made in Louisiana, however, happens to be one of the rarest stable elements on the periodic table. Fortunately, most tellurium is produced as a byproduct of refining copper, a metal that is also seeing a surge in demand due to its wide use in clean energy technologies.

To help ensure First Solar has a dependable domestic supply of tellurium, in 2021, Rio Tinto invested $2.9 million to build a plant capable of recovering roughly 20 metric tons of this semiconductive metalloid at a Utah refinery that processes copper concentrates produced at the company's Kennecott Mine.

"Rio Tinto's decision to invest in tellurium is a win for responsibly-produced, American solar," said First Solar Chief Manufacturing Operations Officer Mike Koralewski.

With byproduct copper production of tellurium "nearing saturation in every country other than China," the U.S. Department of Energy says the country may need to look for alternative supplies of this critical metalloid.

The mineral exploration company First Tellurium is advancing some of North America's most promising tellurium supply alternatives on its Dear Horn and Klondike properties in British Columbia and Colorado, respectively.

"It's clear that North America is going to need a lot more tellurium," said First Tellurium President and CEO Tyrone Docherty.

At Klondike, First Tellurium is continuing exploration that was started by First Solar, which was looking for a secure domestic supply of the thin-film solar panel ingredient as it was ramping up manufacturing in the U.S.

"The Klondike property has by far the highest tellurium grades in rock samples of the hundreds of prospects and mines we examined in the U.S. and Canada from 2006 to 2011," said John Keller, the previous mineral exploration manager for First Solar and a consultant to First Tellurium.

The most advanced project in First Tellurium's portfolio is Deer Horn, a western BC project that hosts 93,000 kilograms of tellurium, along with 100,000 ounces of gold and 3.3 million oz of silver.

To keep its supply chains disentangled from China, First Solar may lean on projects such as these being advanced by First Tellurium.

Aggressive growth strategy

First Solar's coming Louisiana plant is part of an aggressive growth strategy that is showing no signs of letting up.

Since the start of this decade, First Solar has invested roughly $4.1 billion to more than double its manufacturing capacity, from approximately six gigawatts of thin-film solar panels per year in 2020 to around 13 GW today.

Including the Louisiana plant, the company expects to add another 12 GW in the U.S. and India by 2026. This includes a new facility in Alabama and the expansion of its existing Ohio footprint in 2024. First Solar also expects its new facility in India to begin commercial production in the second half of this year.

On top of expanding production capacity, the company is investing up to $370 million in a dedicated research and development innovation center in Perrysburg, Ohio, which is expected to be completed next year.

The new Louisiana facility will produce First Solar's Series 7 modules, which are expected to be manufactured with 100% U.S.-made components.

"In bringing our unique, fully vertically integrated solar manufacturing model to Louisiana, we expect the plant to mirror the commitment to responsible solar evident at every First Solar manufacturing facility, which are among the cleanest, safest, and most diverse in the industry," said Widmar. "We are proud that our investment in American manufacturing will create stable, good-paying manufacturing jobs and economic and social value in the state."

Author Bio

Shane Lasley, Metal Tech News

With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.

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