Hanwha Solutions injects $549.6M for its solar energy business, to establish JV with GS Energy

Hanwha Solutions Corporation is spending more than KRW760 billion or about $549.6 million for its solar energy unit. This will be the company's latest investment as one of the key energy units of the Hanhwa Group.

Hanwha Solutions revealed its plan to invest on Wednesday, Sept. 7. The company shared that the funds will be used to bolster the production capacity of its domestic solar panel materials in South Korea. Increasing the capacity is also part of its push to expand into the renewable energy trade.

According to Yonhap News Agency, the energy and petrochemical firm's investment announcement happened shortly after the Hanwha Group tapped Kim Dong Kwan to lead the key affiliates of the company, including Hanhwa Solutions. He is Hanhwa's current vice chairman, who is also the heir apparent to the conglomerate.

The request is being viewed as a move to hasten the leadership transfer in the firm. In any case, Hanhwa Solutions is also forming a joint venture with GS Energy for its solar energy materials business plans.

Together with the energy unit of the GS Group, Hanhwa will build a production factory inside an industrial complex in Yeosu, South Jeolla. The plant is expected to produce solar ethylene vinyl acetate (EVA) sheets.

In the joint venture, Hanwha Solutions and GS Energy are investing a combined amount of KRW590 billion, and the companies named the JV, H&G Chemical. The former owns a 51% stake, while the latter owns the rest. Starting September 2025, the newly-built plant is aiming to make 300,000 tons of EVA every year.

The joint venture will effectively push Hanwha Solution's annual EVA production capacity to 920,000 tons and become the biggest EVA sheet producer in the world. As for the work distribution, GS Energy will be in charge of feedstock procurement, while Hanwha will provide its technologies and operation capabilities for successful operation.

Solar EVA sheets are core materials used for making solar panels and are known to improve durability and boost the performance of the product. This material also makes solar cells float between the glass and the back sheet panel to safeguard against shocks or vibrations, as per Korea Joongang Daily.