Hanwha Solutions shares climbed after the U.S. unveiled guidelines for companies seeking clean-energy subsidies under the Inflation Reduction Act.
Shares of the South Korean energy and chemical company, currently expanding its solar-panel production in the U.S., rose as much as 16% in morning trade Friday, outperforming the benchmark Kospi’s 1.0% gain.
The U.S. Department of the Treasury and the Internal Revenue Service on Thursday announced detailed regulations for manufacturers to claim a tax credit for their production and sale of clean-energy components, including solar modules and cells, in the U.S.
The Ministry of Economy and Finance in Seoul Friday hailed the new U.S. guidelines as “resolving uncertainty” about which companies and what items should be eligible for the tax credit.
“South Korean battery, solar-energy and wind-power companies, which have built production facilities in the U.S., are expected to benefit greatly,” the ministry said in a press statement.
Hanwha Solutions, which produces photovoltaic cells for solar panels at its U.S. subsidiary Hanwha Q Cells in Georgia, is expanding operations in North America.
Earlier this year, Hanwha announced plans to spend more than $2 billion in its U.S. solar-energy business.