A new U.S. joint venture formed by Vikram Solar, Phalanx Impact Partners and Das & Co. announced plans to invest up to $1.5 billion to develop a vertically integrated solar manufacturing operation named VSK Energy in the U.S, which is highly committed to building a resilient American solar panel and equipment supply chain and reducing U.S. dependence on foreign suppliers.
The first phase of the investment, worth $250 million, plans to develop an American solar module manufacturing facility in a recently completed building in Colorado, a state with an ambitious goal to be powered entirely by renewables by 2040. This facility is projected to commence operations in 2024; create over 900 direct and 200 construction jobs. Starting with an initial capacity of 2 GW in solar module manufacturing, the facility plans to ramp up production to reach 4 GW.
The second phase of the venture has an investment tag of up to $1.25 billion. The fund will be used to complete VSK Energy's vertical integration of the solar manufacturing process, which involves the development of a factory in a Southern U.S. state to produce solar ingots, cells and wafers with an anticipated annual capacity of 4 GW. Operations at the new facility are expected to kick off in 2025. This follows an evaluation and finalization process of potential federal, state, regional, and local incentives for the project. The venture projects that the factory will generate over 1,500 direct and over 1,000 construction jobs.
The Inflation Reduction Act also prompted the establishment of this joint venture. "The Biden Administration and Congress have called for immediate action and through our partnership in VSK, we are taking a decisive step towards achieving solar technology self-sufficiency, fortifying America's energy security, and propelling large-scale solar deployment," said Sriram Das, Managing Director of Das & Co. and Co-Chairman of VSK Energy.
The India-headquartered Vikram Solar is a Tier-1 manufacturer specializing in high-efficient solar module manufacturing and comprehensive EPC solutions with a broad footprint across 32 countries.
—said Gyanesh Chaudhary, Founder, Chairman and Managing Director of Vikram Solar.