Competition in solar panel manufacturing in France is intensifying. while two gigafactories are expected to come into operation at the end of 2026 or early 2027 – those of Holosolis, in the Moselle, and Carbon, in the Bouches-du-Rhône –, the Chinese DAS Solar could undermine their courtesy. This industrialist announced, on November 18, his intention to open a factory in June 2025 in Doubs, in the community of the pays-de-Montbéliard agglomeration, at the same time as signing the land purchase protocol.
After the bicycles, the signs
This would be the group’s first plant in Europe. Founded in 2018 in the Shanghai region,the company now has fourteen factories in China,with 8,900 employees and a cumulative capacity of 55 gigawatts (GW).
The chosen site is located in the municipality of Mandeure. the wasteland belonged to the equipment manufacturer Forvia (formerly Faurecia), which produced transmission systems there.The intermunicipal structure purchased it three years ago. This place is rich in history: this is where Peugeot assembled its bicycles and mopeds in the last century.
The plant would have an annual capacity of 3 GW – compared to the 5 GW of those of Carbon and Holosolis – for an investment of 109 million euros. DAS Solar also promises the creation of“at least 450 jobs initially”, hiring should even begin before the end of the year, explained its vice-president, Shi Si. He chose to come there to present his project, before going to Paris, to the mayors’ congress, in mid-November, where the company was based. a stand.
Green light to the Elysée
The well-oiled communications operation was orchestrated by Frédéric Barbier,DAS Solar’s representative in Europe.At the heart of this implementation project, he knows the terrain well. Between 2012 and 2022 he was a deputy - a socialist then La République en marche – in the 4th electoral constituency of the Doubs, that of Pierre Moscovici, current president of the Court of Auditors, of which he was a deputy. Transformed into consultancy, it was he who suggested the Chinese group choose France, while proposals had come to him from Spain and Germany.
“France had the best dossier, in particular with buildings already built, of adequate size and available. The dialog with the authorities was also constructive, as everyone put their cards on the table. DAS Solar wanted to act quickly and the Elysée was ready to give the green light,provided in particular that there was a technology transfer.says Frédéric barbier.
His first video conferences with the Chinese group date back to the begining of 2023, before traveling there in January 2024. In the spring,the top management of DAS Solar came to France and were received at the Elysée by advisors to the President of the Republic and by the Ministry of Economy.
Europe will tighten its regulations
The commitment of the large energy companies (EDF, Engie and TotalEnergies) to obtain supplies from DAS Solar would also have been decisive, the former MP assures. However, the company is in a great hurry to produce in France, because from next year the new European Net-Zero Industry Act (NZIA) regulation will come into force, adopted at the beginning of 2024, which aims to repatriate the production of energy-efficient technologies to the continent.low carbon emissions.
The goal is for Europe to produce 40% of its panels in 2030. ” THEMember States will be able to grant indirect aid and introduce new criteria in tender notices »recalls Daniel Bour, president of Enerplan, the union of solar professionals. The prospect of customs surcharges that could be decided by the Commission also pushes Chinese companies to accelerate their plans to establish themselves in Europe.
Hope in local employment
“This arrival is a just return of things. Fifty years ago, peugeot moved to Guangzhou to bring its technology. Today the Chinese make their expertise in solar panels available to us to avoid having to pay surcharges”, underlines Charles Demouge, president of the urban community of Pays-de-Montbéliard, who indicates that the car company that became PSA, later Stellantis, now employs less than 5,000 peopel in the region, compared to just over 40,000 in 1975. .
The unemployment rate is still around 9%, “but the industrial know-how remains,there is a lot of land and we have a very qualified workforce”,he adds. Charles Demouge has had a series of meetings at the prefecture in recent weeks. France Travail is already engaged in hiring and a training inventory is being carried out, in collaboration with the employers’ federation UIMM.
Build an entire sector on site
DAS Solar sees far ahead. The company explains that it does not simply want to assemble panels, but to develop rapidly “a complete photovoltaic sector”, including cell manufacturing and silicon manufacturing. All with the installation of Chinese subcontractors. Two companies specializing in cables and connectors are already planned in Mandeure, next to the panel factory.
In total, this would represent 1.1 billion euros of investments, with 2,500 people.«Each chinese company will create a French subsidiary, which French partners can join. At the request of public authorities,they also agreed to sell their production to companies other than DAS Solar,” says Frédéric Barbier,who says he is open to dialogue with Bpifrance,the Caisse des Dépôts or the Participation Agency.
Discussions with Voltec Solar
Also in this case the objective is to act quickly, even if the outlines still remain vague on the intertwining of the shareholders and the distribution of governance. “Everything is under negotiation” assures Frédéric Barbier. Surprises are always possible.
According to our information, DAS Solar is in negotiations with the Alsatian Voltec Solar, one of the last French panel manufacturers, which already purchases cells from the Chinese group. But it doesn’t filter anything. The two groups signed a confidentiality agreement.
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The Chinese quasi-monopoly on photovoltaics
China produces 80% of the world’s solar panels and according to the Wood Mackenzie company the top ten world producers are Chinese.
His progress in this area is dizzying. Twenty years ago china’s market share was only 6%. Since then, the country has continued to increase its capabilities and gradually eliminate competition. Prices have fallen (divided by ten in ten years), and the phenomenon is accelerating.
China tripled its production in 2022, and then double it again in 2023. To the point that the supply of panels would now exceed demand.
How might the Net-Zero Industry Act influence the future of solar panel manufacturing competition in Europe?
interview: The Future of Solar Panel Manufacturing in France
Host: welcome to this edition of Time.news! Today, we have the privilege of speaking with Dr. Isabelle Laurent, an expert in renewable energy and solar technologies.With the recent developments in the solar panel manufacturing sector in France, notably the emergence of DAS Solar’s new plant, we’re here to delve deeper into the implications of this competition. Welcome, Dr. Laurent!
Dr. Laurent: Thank you for having me! I’m excited to discuss these developments in solar energy.
Host: Let’s start with the big news. DAS Solar, a Chinese company, plans to open a factory in France in mid-2025, while local companies like Holosolis and Carbon are also gearing up with their gigafactories. How do you see this competition shaping the solar industry in France?
Dr. Laurent: It’s a fascinating situation! The entry of DAS Solar presents notable competition for Holosolis and Carbon. With DAS Solar’s established footprint in China, they bring valuable experience, technology, and economies of scale. This could push local manufacturers to innovate and improve their efficiency. However,it also raises concerns about local market saturation and the sustainability of smaller players.
Host: You mentioned innovation. What kinds of innovations do you think local companies will need to adopt in order to compete effectively?
Dr. Laurent: Local companies might need to focus on unique value propositions, like offering tailored solutions for specific markets, enhancing product quality, and investing in technology transfer to increase efficiency. Moreover, aligning with the European regulatory environment, especially with the upcoming Net-Zero Industry Act, will be crucial. Adhering to local sustainability practices can also be a differentiator.
Host: speaking of regulations, you touched on the Net-Zero Industry Act. How will this legislation impact the dynamics of solar panel manufacturing in Europe?
Dr. Laurent: The Net-Zero Industry Act represents a shift towards greater localization of production in Europe. It aims to not only reduce carbon footprints but also secure supply chains for renewable energy technologies. This will encourage companies operating in Europe to ramp up their local production capabilities in response to regulatory pressures and incentives.The act could be beneficial for both local manufacturers and foreign players who wish to set up operations in alignment with the new standards.
host: DAS Solar is promising the creation of at least 450 jobs initially. Do you think foreign investments like this can significantly impact the job market in the local region?
Dr. Laurent: Absolutely! The establishment of DAS Solar’s factory in Doubs could provide significant employment opportunities in the area. Beyond the direct jobs, it could also lead to the creation of supporting industries, from logistics to maintenance services. Furthermore, it may lead to workforce advancement initiatives, were local talent receives training in solar technology, enhancing their skill sets.
Host: Frédéric Barbier, DAS Solar’s representative in Europe, cited constructive dialog with French authorities as a key reason for choosing France over other European nations. What does this say about France’s commitment to renewable energy?
Dr. Laurent: It illustrates a proactive approach on France’s part to foster a favorable investment climate for renewable energy companies. By providing infrastructure support and facilitating communication, the French government is showcasing its intent to lead in the green transition. This kind of collaboration is essential for attracting foreign investment and accelerating the transition to renewable energy.
Host: Lastly, how can France ensure that this competition leads to lasting growth in the solar sector rather than a race to the bottom in terms of price?
Dr. Laurent: France should focus on regulatory frameworks that promote sustainable practices and responsible sourcing of materials.Encouraging partnerships between companies, education institutions, and government can create an ecosystem that prioritizes innovation and environmental duty. Additionally, supporting research and development initiatives can help tender better technologies that emphasize quality over price, ultimately benefitting both consumers and the environment.
Host: Thank you, Dr. Laurent, for providing such insightful analysis on these critical developments in the solar panel manufacturing landscape in France!
Dr. Laurent: Thank you for having me! I look forward to seeing how this sector evolves in the coming years.
host: And thank you to our listeners for tuning in. Stay connected with time.news for more updates on renewable energy and industry developments.