TOYO Co., Ltd. announced that it has acquired the remaining 24.99 % membership interest in its U.S. subsidiary, TOYO Solar LLC, on December 8 2025, making the Texas‑based company a wholly‑owned entity. The transaction closed at a purchase price of $120 million, a figure that reflects the value of the subsidiary’s 2.5 GW module assembly facility under construction and its projected cash‑flow contribution to TOYO’s consolidated results.
The acquisition is a key milestone in TOYO’s strategy to build a domestic manufacturing base that can serve the growing U.S. utility‑scale market. The Texas facility, slated to reach full production in 2027, will assemble modules from cells produced in Ethiopia, where the company has already expanded its cell‑manufacturing capacity to 4 GW. Ethiopia’s tariff‑exempt status for bifacial cells allows TOYO to ship U.S.‑market modules without incurring the 2.5 % import duty that applies to cells made in Vietnam, giving the company a competitive pricing advantage and a more resilient supply chain.
TOYO’s dual‑region strategy—Ethiopia for cell production and Texas for module assembly—creates a vertically integrated supply chain that reduces logistics costs and mitigates geopolitical risk. The Ethiopian plant benefits from abundant hydropower, aligning with TOYO’s sustainability goals, while the Texas plant positions the company to capture the U.S. government’s incentive programs for domestic manufacturing. Together, the two sites enable TOYO to offer fully U.S.‑made modules at a lower cost than competitors that rely on imported cells.
The transaction supports TOYO’s revised 2025 guidance, which now projects solar‑cell shipments of 4.2‑4.4 GW and revenues of $375‑$400 million. Management attributes the upward revision to the accelerated ramp‑up of the Texas facility, the expected increase in U.S. demand for domestic modules, and the cost advantages of Ethiopian cell production. The guidance reflects confidence that the company can maintain healthy margins while scaling production, despite the capital intensity of the new facility.
CEO Junsei Ryu emphasized that the full ownership of TOYO Solar LLC “strengthens our operational control and accelerates the delivery of American‑made solar solutions at scale.” He added that the combined U.S.–Ethiopia strategy “positions TOYO to meet the growing demand for clean energy in North America while leveraging Ethiopia’s tariff‑exempt status to keep costs competitive.” The company’s leadership signals a clear commitment to expanding its U.S. presence and reinforcing its vertically integrated model.
The consolidation of TOYO Solar LLC into the parent company is expected to streamline decision‑making, reduce inter‑company transaction costs, and improve the efficiency of capital allocation across the supply chain. While the acquisition involves a significant upfront outlay, the long‑term benefits of full ownership—such as tighter control over quality, faster response to market changes, and the ability to fully capture the profitability of the Texas plant—are projected to outweigh the short‑term impact on earnings. No market‑reaction data were available, but the strategic alignment and guidance upgrade suggest a positive outlook for TOYO’s U.S. operations.
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