U.S. approves $500M for First Solar's module factory in India
- Ben Geman, author ofAxios Generate
Aerial view of sheep grazing next to photovoltaic cell solar panels on October 9 in Thirumani village, Karnataka, India. Photo: Abhishek Chinnappa/Getty Images
The U.S. International Development Finance Corporation (DFC) will provide up to $500 million in debt financing for the U.S. company First Solar's plan to build a major module factory in India.
Why it matters: The DFC said its the largest debt financing transaction in its history. And the WSJ delves into the geopolitics of the deal, noting it's "putting American taxpayer money behind a bid to weaken China’s dominance of the solar industry’s supply chain."
The big picture: The announcement says most of the facility's output is expected to be used in India's growing solar market and notes India is a "key partner to the U.S. in the Indo-Pacific region."
What they're saying: “This transaction represents another milestone in the United States effort to drive alternative supply chains — and to articulate a vision for climate finance that drives our development mission," said Dev Jagadesan, the DFC's acting CEO, in a statement.