China's Boway Alloy to Sell Last US PV Asset to India's Inox Solar Amid Regulatory Risks

(Yicai) May 14 -- Boway Alloy Material, a Chinese developer and manufacturer of non-ferrous alloy materials, will sell the last photovoltaic asset it owns in the United States to Indian manufacturer Inox Solar to mitigate local regulatory risks.Boway Alloy will sell Boviet Solar Cell Technology North Carolina, including its solar cell factory under construction and all related equipment, to Inox Solar Americas for USD470 million, the Ningbo-based company announced yesterday.The transaction will be completed after the two-gigawatt plant is built and put into operation by the end of this year. Boway Alloy initially invested USD370 million in this project.At the end of last month, Inox Solar Americas agreed to acquire Boway Alloy's three-gigawatt solar module factory in North Carolina, which is already operational, for up to USD254 million.Boway Alloy's divestment of its PV assets in the US is primarily due to changes in the regulatory environment after the issuance of the US One Big Beautiful Bill Act, which stipulates that Chinese entities cannot hold more than 25 percent equity in US solar projects, or they will not be eligible for federal clean energy subsidies.Moreover, Boway Alloy has faced challenges with its PV cell and module factories in Vietnam, as they have also been impacted by high anti-dumping and countervailing duties imposed by the US on solar products from the Southeast Asian country, leading to a halt in production and operations.The One Big Beautiful Bill Act has prompted several Chinese PV companies to adjust their operations in the US. For instance, solar module giant Jinko Solar recently announced it would sell its stake in a module factory in Florida for USD192 million, reducing its ownership from 100 percent to 24.9 percent. Trina Solar divested its module factory in Texas in November 2024, retaining only a 17.4 percent stake.Shares of Boway Alloy [SHA: 601137] closed down 1.1 percent at CNY19.75 (USD2.91) today, after earlier gaining as much as 6.5 percent. The Shanghai Composite Index fell 1.5 percent amid a broad market selloff, as investors rushed to lock in profits from the past one and a half months.Editor: Futura Costaglione