Canadian Solar consolidates US manufacturing under parent, including solar and storage

Canadian Solar Inc. has announced today that it is restructuring its United States operations, resuming direct control over its manufacturing assets in solar and storage while reshoring operations.

The company announcement details that it would form a new joint venture, CS PowerTech, to operate its U.S. manufacturing and sales divisions. For the generation and energy storage side, this new entity will oversee both solar module and cell production, as well as the manufacturing and sales of its energy storage systems (ESS), branded as e-STORAGE.

Canadian Solar will hold a controlling 75.1% stake in CS PowerTech, along with acquiring “specific overseas facilities that support US operations,” effectively moving these critical assets out from under the purview of its majority-owned, China-listed subsidiary, CSI Solar, which is based in Suzhou. The transaction is valued at approximately $50 million, determined by “fair market value based on third-party appraisal”, said the release.

CSI will continue to own 24.9% of the CS PowerTech venture. In the press release and associated filings to the Nasdaq stock exchange, the “overseas facilities” were not specified.

Storage

On the battery front, the operational shift supports a sizeable storage portfolio of both product and development. Through its e-STORAGE subsidiary, Canadian Solar reported a $3.1 billion contracted backlog and an 81 GWh global development pipeline as of late 2025. The consolidation allows the company to integrate its manufacturing capabilities directly with its project development arm, Recurrent Energy.

“Launching CS PowerTech and resuming manufacturing directly under the publicly traded parent company reflects Canadian Solar’s commitment to its North American homebase and to building a resilient, transparent and diversified domestic supply chain,” said the company in its press release announcing the moves.

The transaction is subject to board and shareholder approvals. Canadian Solar also said “the company [is] eyeing further joint ventures with American partners to expand its solar and power footprint.”

FEOC/IRA Compliance

The restructuring appears calculated to address Foreign Entity of Concern (FEOC) guidelines. By transferring control to the Canadian-headquartered parent company and U.S. shareholders, the company positions its battery products to better align with the Inflation Reduction Act (IRA).

It also avoids some scrutiny

Similar moves have been undertaken by Trina Solar, which sold its solar manufacturing assets in Dallas, Texas to T1 Energy (which was named Freyr Battery at the time).

Corning acquired JA Solar’s Phoenix solar facility as well, and, closing the circle, T1 Energy and Corning announced an at-scale supply deal within a month.

A slide from Canadian Solar’s most recent financial reporting presentation showed the company’s operations as follows, while noting its 6 GWh ESS facility in Shelbyville, Kentucky, in the US, is under construction. The factory will first be a 3 GWh factory, with the company saying it would double the manufacturing output in future years.