US Company Becomes World’s Most Valuable Solar Firm After Chinese Rivals Slip

First Solar Inc., a US company, has made history by becoming the world’s most valuable solar manufacturer, surpassing its Chinese rivals. This achievement comes as Chinese companies face challenges such as a price war and trade barriers imposed by the US.

With a market capitalization of $21.15 billion, First Solar Inc. overtook Sungrow Power Supply Co., which saw a decrease in its value to about $20.85 billion. This marks the first time since 2018 that a Chinese company has not held the top spot in the solar equipment manufacturing industry.

China’s dominance in global production of solar panels has led to overcapacity, causing prices to drop and profit margins to shrink. As a result, leading Chinese manufacturers like Longi Green Energy Technology Co. have reported losses in the first quarter of this year.

In response to these challenges, the US and Germany have criticized Chinese companies for hindering the development of supply chains in other parts of the world. President Joe Biden has announced higher tariffs on Chinese solar panels to support US manufacturers, benefiting companies like First Solar.

While First Solar may lead in market capitalization, it still lags behind its Chinese counterparts in terms of clean energy production. Despite producing 12 gigawatts of panels in 2023, First Solar falls short of Shanghai-based Jinko Solar Co., which produced 79 gigawatts.

This milestone for First Solar highlights the shifting dynamics in the solar manufacturing industry and the impact of geopolitical tensions on the market. As the company continues to expand and innovate, it remains to be seen how it will compete with its Chinese rivals in the future.