Bill Gates-backed solar company raises $103 million for US wafer factory

Solar energy parts manufacturer CubicPV said on Tuesday it has raised $103 million to build a US factory to make silicon wafers, key building blocks for solar panels that are produced almost entirely by China.

The investment was led by the clean energy arm of Thai industrial conglomerate SCG with additional funding from existing investors Hunt Energy Enterprises and Bill Gates' Breakthrough Energy Ventures.

Bedford, Massachusetts-based CubicPV is seeking to become a pioneer in domestic wafer manufacturing, with a 10 gigawatt factory to be completed in 2024. It plans to announce the location this year.

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China produces about 98% of the world's wafers, and the US wants to reduce its reliance on imports to realize President Joe Biden's ambitious clean energy and climate change goals.

Some solar manufacturers recently advocated for strict federal rules that would have required wafers to be made in America for projects to qualify for a new subsidy for facilities built with US-made products. But the US Treasury Department declined to go that far, creating a potential obstacle for domestic wafer production.

In a statement, CubicPV said the new equity financing signaled investor support for its plan to make wafers in America.

"We thank SCG Cleanergy for their confidence in our manufacturing goals and product roadmap," CubicPV Chief Executive Frank van Mierlo said in a statement.

The first $33 million of the investment is available to the company immediately, it said. The remaining funds are tied to undisclosed project milestones.

The company named Dave Gustafson as president of its wafer facility. Gustafson was previously vice president of commercial manufacturing at Bridgestone's North American operations.