Canadian Solar has announced plans to invest $800 million in the development of a 5 GW solar cell factory in Jeffersonville, Indiana. Once complete, the facility is expected to produce enough cells to support the production of about 20,000 solar modules per day.

The company said it expects to begin production at the plant in 2025. More than 1,200 jobs will be created once the facility is operational.

“Indiana’s strong advanced manufacturing sector positions the state to help lead the global energy transition, developing and powering new solutions in batteries, solar and hydrogen,” said Indiana Governor Eric Holcomb. “Canadian Solar’s new US location in Jeffersonville will put our skilled Hoosier workforce at the center of cultivating solar power, making energy efficient panels more accessible to consumers across the country.”

The company said the cells produced at the Indiana facility will be used at its new Mesquite, Texas module assembly plant, which was announced in June.

A total of $12.3 million in tax credits and workforce training grants were offered to Canadian Solar through Indiana Economic Development Corp. The funds are conditional on the company following through on investment and hiring plans.

Canadian Solar has been publicly traded on the NASDAQ since 2016, and was established in 2001 in Guelph, Canada.

In a recent pv magazine USA webinar, Clean Energy Associates discussed how solar cells are a critical part of the supply chain that needs to expand capacity to make a meaningful impact on energy independence for the United States.

Along with raw polysilicon, ingots, and wafers, cells are under-represented in the US supply chain when compared with module assembly capacity and overall PV module demand.