Multinational solar manufacturer Canadian Solar has announced that it will take direct control of its U.S. solar PV and energy storage manufacturing operations, a strategic shift aimed at mitigating supply chain risks and strengthening domestic production.

According to the company, it will form new joint ventures (JVs) with its majority-owned manufacturing subsidiary CSI Solar and other U.S.-based stakeholders. These JVs will consolidate ownership of Canadian Solar’s U.S. manufacturing assets under a newly created entity named CS PowerTech.

Canadian Solar will retain a 75.1% controlling stake in CS PowerTech, which will oversee its U.S.-based solar cell, module, and planned energy storage system manufacturing operations.

As part of the restructuring, Canadian Solar will also acquire a 75.1% majority ownership in “certain overseas facilities that support U.S. operations” from CSI Solar. The company said the total value of these assets is estimated at around US$50 million. While Canadian Solar did not specify which overseas factories are included, CSI Solar currently operates solar PV and battery storage manufacturing facilities in Southeast Asia, China, and Brazil.

Canadian Solar already operates a module assembly plant in Mesquite, Texas, and expects to commission a solar cell facility in Indiana and a lithium battery manufacturing plant in Kentucky by the end of next year. These facilities are likely included in the ownership shift.

Earlier this year, CSI Solar signaled that it was considering relocating part of its manufacturing footprint to “low-tariff regions” in response to U.S. import duties. Following today’s announcement, Canadian Solar’s share price rose, while CSI Solar’s share price declined, reflecting investor reactions to the revised corporate structure.