TOYO Co., Ltd. announced a one‑year sales contract with a leading U.S. polysilicon producer, adding domestically sourced raw material to its existing non‑FEOC supply base. The agreement is intended to support the company’s Ethiopian cell plant and Houston module assembly, ensuring a tariff‑free, U.S.‑origin supply chain that aligns with the Inflation Reduction Act’s content requirements.
The contract, signed on January 7 2026, does not disclose the price or total value, but the partnership with a U.S. polysilicon manufacturer—identified in industry circles as either Wacker Chemie or Hemlock Semiconductor—provides a reliable domestic source that reduces exposure to foreign‑entity‑of‑concern risks. By securing U.S. polysilicon, TOYO can qualify for the IRA’s production tax credits and maintain eligibility for utility‑scale projects that rely on domestic content.
The deal complements TOYO’s recent expansion of its global footprint. The company’s 2 GW solar‑cell facility in Ethiopia began commercial production in April 2025, and its Houston module plant started operations in October 2025 with an initial 1 GW capacity that is expandable to 6.5 GW. The new polysilicon supply will feed both sites, helping the company meet growing demand for U.S.‑made panels and support its strategy to capture the IRA‑backed utility‑scale market.
Management highlighted the strategic value of the agreement. CEO Junsei Ryu said the partnership “builds a robust, policy‑aligned supply chain that strengthens our U.S. expansion and positions us to capture the IRA‑driven utility‑scale demand.” The company’s first‑half 2025 results showed revenue of $139 million, up 0.7% from $138.1 million a year earlier, but net income fell to $4 million from $19.6 million, and gross‑profit margin contracted to 16.6% from 19.3% due to rising raw‑material costs. The new U.S. supply is expected to help stabilize costs and improve margin outlook as the company scales its U.S. operations.
While the announcement does not include immediate market reaction data, the contract signals a proactive approach to regulatory compliance and supply‑chain resilience. By securing a domestic polysilicon source, TOYO positions itself to meet the IRA’s content thresholds, reduce geopolitical risk, and support its expanding U.S. manufacturing footprint—factors that could influence long‑term growth prospects.
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