Canadian Solar Restructures US Operations Through Joint Ventures with CSIQ

PVTIME – On 30 November, Canadian Solar (SH: 688472) announced plans to establish joint ventures with its majority shareholder, CSIQ, to manage the manufacturing and sales of solar cell modules, energy storage cells, and integrated storage cabinets in the United States and other overseas markets. CSIQ will hold a 75.1% stake, both directly and indirectly, excluding holdings through Canadian Solar, while the latter will own 24.9%. CSIQ will appoint board members to exercise actual control.

Two key joint ventures, M and N, will be created with the same ownership split. Venture M will oversee US solar operations, including running solar cell and module facilities, while Venture N will focus on US energy storage activities, operating plants that produce lithium iron phosphate storage cells, battery packs, and DC battery energy storage systems. Initially, both will operate by leasing certain overseas assets from Canadian Solar, with rental costs estimated for 2026 based on daily connected transactions, given uncertainties around asset acceptance and commissioning. Future plans include potential new investments, asset acquisitions, and bringing in qualified overseas third-party investors.

Canadian Solar will also restructure its non-US manufacturing facilities that supply the US market, via an equity transfer, including the operational solar wafer slicing plant (THX1), the energy storage facility (SSTH), and the battery factory (GNCM). These will adopt the same 75.1:24.9 ownership split. This will secure a one-time equity transfer payment, ongoing 24.9% equity returns from US operations, and recovery of prior investments.

This move is in response to the evolving US regulatory requirements, which aim to safeguard operational stability, mitigate risks, sustain long-term participation in the US market, and protect the interests of shareholders, including minority investors. Canadian Solar noted that the US is the world’s second-largest solar market, with a mature power system, and that solar energy storage offers clear business models, high returns, and strong growth.

Under the strategic split, CSIQ will focus on manufacturing, selling, and servicing solar modules and energy storage systems in the US, targeting utility power companies and large industrial and commercial clients, in order to meet domestic energy transition needs. Meanwhile, Canadian Solar will concentrate on its module, energy storage, and system integration businesses in non-US markets, including Europe, Latin America, Asia, and the Middle East, in order to strengthen its competitive edge in these regions.