On October 16, 2025, the U.S. solar manufacturing sector saw a major jolt of momentum as Talon PV LLC, an advanced solar cell developer based in Baytown, Texas, announced the sale of a minority stake to T1 Energy Inc. The deal, structured as a Simple Agreement for Future Equity (SAFE), marks a significant milestone for both companies—and, by extension, for the broader movement to reshore America’s clean energy supply chain.
This partnership is just the latest in a string of headline-making moves by T1 Energy, a company that’s been on an aggressive expansion path since rebranding from Freyr Battery in early 2025 and pivoting its focus squarely onto U.S. solar photovoltaic (PV) manufacturing. According to a Talon PV press release cited by Mercom Capital Group, the minority investment “validates our technology roadmap and strengthens our commercial foundation as we move into project financing,” said Adam Tesanovich, Co-Founder and CEO of Talon PV. He added, “With Marathon Capital’s continued support, Talon PV is well-positioned to advance toward construction and deliver 4.8 GW of high-efficiency U.S.-made solar cells to the market by early 2027.”
For Talon PV, the T1 Energy investment comes on the heels of full funding from Eagle Group, a Houston-based venture capital firm. The Baytown facility, once operational, will produce n-type TOPCon solar cells—one of the most advanced and commercially proven PV technologies available in the U.S. The project has already secured $97.1 million in state and local tax incentives and is on track for commercial operation in the first quarter of 2027. Talon is also in talks with multiple partners to complete its capital structure and is exploring further strategic collaboration with T1 Energy.
But the news is just as significant for T1 Energy, whose own ambitions for U.S. solar dominance have made it one of the most closely watched companies in the sector this year. On October 10, just days before the Talon deal was announced, T1 Energy (NYSE: TE) revealed its minority equity stake in Talon PV via a SAFE agreement. This investment complements T1’s own 5 GW “G2 Austin” solar cell project in Rockdale, Texas, which is slated to come online in late 2026. As CEO Daniel Barcelo put it in a statement reported by Benzinga, “Boosting U.S. solar cell output is necessary to support energy security.”
It’s a refrain Barcelo has returned to repeatedly in 2025, as T1 Energy has rolled out a series of strategic partnerships and supply chain deals. On August 15, T1 struck a landmark agreement with Corning Inc. to buy American-made polysilicon and wafers for its Texas factories, starting in the second half of 2026. Barcelo called it “American companies building in America” and emphasized that it protects “American energy security.” According to Reuters, the Corning deal “connects polysilicon, wafers, cells and panels manufactured in the United States,” a critical step as the sector seeks to reduce reliance on imported components and qualify for the latest U.S. tax credits, including Section 45X incentives for domestic manufacturing.
The market has clearly taken notice of T1’s aggressive moves. On October 15, T1 Energy’s stock surged roughly 26% following news of a $75 million supply deal with Nextracker, which will provide patented steel solar panel frames for T1’s Wilmer, Texas module plant (G1 Dallas). In premarket trading, shares spiked over 34% to around $5.37 before settling to $4.91, according to Investing.com. Over the year through October 14, TE had already climbed about 55%, with a one-year total return now exceeding 250%. However, the longer-term picture is more nuanced: over the past three years, the stock remains down about 70%, reflecting early losses under its Freyr Battery identity.
Still, recent investor enthusiasm has been buoyed by T1’s steady stream of contract wins and production milestones. The Nextracker deal, for example, commits both companies to ramp up U.S. steel frame production and replace imported aluminum frames—another step toward a fully domestic supply chain. Barcelo told reporters, “The U.S. needs to establish critical energy supply chains built on domestic capacity,” especially as demand from AI and data centers surges.
T1’s strategy is centered on building an integrated U.S. solar supply chain, from polysilicon and wafers (with Corning) to cells (G2 Austin, Talon Baytown) and modules (G1 Dallas), plus energy storage. The company now operates the 5 GW Wilmer module factory, producing PV panels for sale under long-term contracts, and aims to leverage U.S. policy tailwinds—especially those offered by the Inflation Reduction Act and Section 45X tax credits. As Simply Wall St notes, rising U.S. electricity demand from AI, electric vehicles, and data centers, combined with protective trade measures, “position T1 as a key provider of solar modules and storage.”
Financially, T1’s Q2 2025 results were a mixed bag. The company reported GAAP revenue of $132.8 million, about 5% below analyst expectations, with an EPS loss of $0.21. Cash reserves dropped to $46.7 million by June 30, down from $221.5 million a year earlier, reflecting heavy R&D and capital expenditures for G2 Austin as well as legacy operating losses. Debt remains high at over $640 million, with about $8 million in quarterly interest payments. Despite these pressures, management reiterated full-year 2025 EBITDA guidance of $25–50 million, though they acknowledged risks are skewed to the low end due to tariff uncertainty and an industry shift toward merchant sales.
To finance the G2 Austin project, construction of which is set to start later in 2025, T1 is seeking roughly $850 million in new investment. The first 5 GW phase is expected online by the fourth quarter of 2026, and full commercialization could eventually fund the company’s long-term “run-rate EBITDA” goal of $650–700 million. However, as MarketScreener and Simply Wall St analysts point out, the recent stock rally may be running ahead of fundamentals, with some labeling the stock “overvalued” by as much as 21% as of October 12. Consensus ratings from analysts range from Hold to Buy, with an average 12-month price target of about $3.00—well below recent trading levels.
Despite these concerns, there’s no denying the energy (pun intended) that T1 and its partners have injected into the U.S. solar sector. The Talon PV partnership, in particular, stands out for its potential to significantly expand domestic solar cell output and support national goals for energy security and regulatory compliance. Both companies are betting that a robust, homegrown supply chain will be key to meeting surging demand and weathering the uncertainties of global trade.
As the U.S. solar manufacturing renaissance gathers steam, all eyes will be on T1 Energy, Talon PV, and their network of partners to see if they can deliver on their ambitious promises—and if the market’s optimism proves justified.
