Shares of Hanwha Solutions, a South Korean energy and chemical company, experienced a significant boost following the release of new guidelines by the U.S. government regarding clean-energy subsidies. These guidelines were revealed under the Inflation Reduction Act.
Hanwha Solutions, which is currently expanding its solar-panel production in the U.S., saw its shares rise by as much as 16% during morning trade on Friday. This substantial increase outperformed the benchmark Kospi index's 1.0% gain.
The U.S. Department of the Treasury, in collaboration with the Internal Revenue Service, introduced detailed regulations that enable manufacturers to claim tax credits for the production and sale of clean-energy components within the U.S. These components include solar modules and cells.
The Ministry of Economy and Finance in Seoul enthusiastically welcomed these new guidelines, hailing them as a resolution to the previous uncertainty surrounding which companies and items would be eligible for the tax credit. In a press statement, the ministry stated that South Korean battery, solar-energy, and wind-power companies, particularly those with production facilities in the U.S., are expected to reap significant benefits from this development.
Hanwha Solutions, through its subsidiary Hanwha Q Cells in Georgia, produces photovoltaic cells for solar panels and is actively expanding its operations in North America. Earlier this year, the company announced its plans to invest over $2 billion in its U.S. solar-energy business.