German inverter maker SMA Solar Technology AG plans to build an inverter factory at an unspecified location in the United States.

The company said the new manufacturing facility will use production equipment that was originally intended for its production site in Thalheim, Germany.

The factory will likely be operational in 2025 and will have an annual capacity of 3.5 GW.

Discussions are currently underway “with several federal states and potential partners to find the most strategically advantageous production location and the right approach,” the company said, noting that up to 200 new jobs will be created in the first three years.

“The US is a key market for SMA, and the Inflation Reduction Act (IRA) offers an extraordinary opportunity for long-term growth,” said CEO Jürgen Reinert. “With this step, we will significantly strengthen our market share in the USA and set the course for SMA’s future growth.”

SMA is also pushing ahead with capacity expansion in Germany, where it plans to reach 40 GW. It said it wants to produce solutions for large PV projects and storage systems from 2025 at its Niestetal site, for use in global markets.