Canadian Solar’s making a big move to protect its U.S. business from trade barriers tied to China. The company announced on November 30, 2025, that it’s restructuring its U.S. operations by forming a new joint venture called CS PowerTech.
Canadian Solar will hold a 75.1% controlling stake in CS PowerTech. Its China-listed subsidiary, CSI Solar, will hold the remaining 24.9%. The deal is valued at about $50 million, based on a third-party appraisal. It still needs board and shareholder approvals before it’s finalized.
CS PowerTech will run Canadian Solar’s U.S. solar module and cell production, along with its e-STORAGE energy storage business. The e-STORAGE brand covers lithium iron phosphate batteries, battery packs, and DC energy storage systems. Canadian Solar’s project development arm, Recurrent Energy, will also connect with the new venture.
The restructuring also involves transferring ownership of several overseas facilities that support U.S. operations. These reportedly include facilities such as solar wafer, storage, and battery factories. The new ownership structure gives Canadian Solar 75.1% and CSI Solar 24.9% of those assets too. CSI Solar will lease some of its overseas assets to the new joint ventures during the early stages.
One big reason for the move is regulatory compliance. The U.S. Inflation Reduction Act has strict rules about Foreign Entities of Concern, which can block certain Chinese-linked companies from getting tax credits. By shifting control to a Canadian-headquartered parent and U.S. shareholders, Canadian Solar’s aiming to align with those rules. Other solar companies like Trina Solar and JA Solar have made similar moves.
Canadian Solar says the restructuring will help build a stronger U.S. supply chain and is expected to create thousands of American manufacturing jobs. The company’s already building a multi-GWh battery storage facility in Kentucky. Its e-STORAGE business had a contracted backlog of $3.1 billion and an 81 GWh global pipeline as of late 2025. CSI Solar’s overseas PV wafer plant, THX1, reportedly has an multi-GW capacity and has been commissioned but remains idle.
Canadian Solar plans to bring in American partners through future joint ventures as it keeps expanding its U.S. presence. The announcement was covered by ESS News on December 3, 2025, highlighting the strategic significance of the deal for North American solar markets.
References
- https://www.energytrend.com/news/20251201-50499.html
- https://www.pv-magazine.com/2025/12/03/canadian-solar-consolidates-us-manufacturing-assets/
- https://www.ess-news.com/2025/12/01/canadian-solar-consolidates-us-manufacturing-under-parent-including-solar-and-storage/
- https://www.investing.com/news/company-news/canadian-solar-secures-500mw-battery-storage-deal-with-us-utility-93CH-4565236
- https://www.prnewswire.com/news-releases/canadian-solar-to-resume-direct-oversight-of-us-manufacturing-and-operations-302628710.html
- https://canadiansolar-energy.co.jp/en/news_release/2026/1823.html
