Southeast Asian solar manufacturers are diversifying into green hydrogen and battery storage as US tariffs threaten $2.3 billion in exports, with Thailand and Vietnam leading strategic shifts.
Vietnam’s Trina Solar is scrambling to secure non-Chinese wafers while Malaysia’s First Solar capitalizes on tariff-exempt technology, as new Thai incentives spark hydrogen project rush.
Immediate Impact of 3,521% US Duties
Digitimes data reveals ASEAN solar exports to the US plummeted 47% week-over-week since May 15 tariff implementation. Vietnam’s Trina Solar confirmed to Reuters on 22 May 2024 that it’s fast-tracking a Cambodian wafer plant using Australian quartz. ‘This $150 million investment lets us circumvent Chinese inputs entirely,’ said CEO Gao Jifan during the facility’s groundbreaking.
Thailand’s Hydrogen Gambit
The Board of Investment approved eight green hydrogen projects worth $500 million on 21 May, offering 8-year corporate tax holidays. Energy Minister Pirapan Salirathavibhaga stated: ‘We’re leveraging our gas pipeline infrastructure to become Asia’s hydrogen hub by 2027.’
China’s Shadow Capacity Expansion
JinkoSolar’s Laotian facility – producing 5.2GW of Chinese-backed modules annually – now accounts for 18% of ASEAN’s solar exports to Europe. However, SolarPower Europe reports 34% fewer EU imports from ASEAN in Q1 2024 as buyers anticipate CBAM compliance costs.
Global Trade Fragmentation Accelerates
IEA Director Dr. Fatih Birol noted: ‘The US tariffs and EU’s CBAM are creating competing clean tech blocs. ASEAN’s battery storage investments, like Indonesia’s $2.1 billion gigafactory complex, may prove more sustainable than solar assembly.’
Regional Integration vs Protectionism
While Malaysia’s First Solar benefits from thin-film tech exemptions, Philippine manufacturers struggle with 14% production cost increases. The ASEAN Power Grid initiative faces delays as members prioritize national energy security over regional connectivity.
Historical Context: From Panels to Storage
The current pivot mirrors 2018’s US-China solar trade war, when Southeast Asia first emerged as a production alternative. Just as mobile payments revolutionized Asian finance in the 2010s, battery storage investments now promise to reshape energy markets through grid-scale deployment.
Technological Precedents
Thailand’s hydrogen strategy builds on its 2000s success in natural gas vehicle adoption, which reached 600,000 converted cars by 2015. Similarly, Vietnam’s solar push benefited from feed-in tariffs first introduced in 2017, enabling 16GW of installations by 2022.
