Solar and battery solutions provider T1 Energy has begun construction of its G2_Austin TOPCon solar cell manufacturing facility in Milam County, Texas. The facility is expected to receive $400 million to $425 million in investment.

The company had finalized its site selection for the new solar cell manufacturing facility in March 2025.

The solar cell facility’s first phase is projected to have an annual capacity of 2.1 GW. It is expected to begin production by the end of 2026.

G2 Austin is T1’s third major investment in Texas. The company will utilize proceeds from its $72 million registered direct equity offering, along with a $50 million registered direct convertible preferred offering, for the facility’s construction.

T1 said its investment in the over 100-acre  facility is part of its efforts to build a strong silicon-based manufacturing industry. The fabrication facility will source polysilicon and solar wafers from Hemlock Semiconductor and Corning in Michigan.

The cells are expected to be used for manufacturing solar modules at T1’s 5 GW G1_Dallas facility. In January and February 2025, the facility’s total solar module manufacturing exceeded 220 MW, surpassing the company’s initial plan by 48%.

The G1 Dallas facility has four fully operational utility-scale production lines and currently produces a mix of mono PERC and TOPCon modules.

The second phase of the G2 facility is expected to reach 3.2 GW. It could be expanded if demand for solar cells increases.

T1 said it is in advanced negotiations with multiple potential offtakers for the modules from G1 made with solar cells at G2 for deliveries starting in 2027.

In October this year, T1 announced a strategic framework agreement to use Nextpower’s steel module frame technology for its modules.

In the same month, T1 announced the acquisition of a minority stake in Talon PV, a solar cell manufacturer.