Canadian Solar's Subsidiary CSI Solar Executes on Capacity Additions Across Its Solar Supply Chain

Canadian Solar Inc. (the "Company" or "Canadian Solar") (NASDAQ: CSIQ), today announced that its majority-owned subsidiary CSI Solar Co., Ltd. ("CSI Solar") has entered into a multi-year investment agreement with the municipal government of Hohhot, in Inner Mongolia, China, to invest and execute on its previously announced capacity expansion and vertical integration plans.

The initial phase of the investment includes 20 GW of ingot, 40 GW of crucible, 10 GW of wafer, 10 GW of cell, 5 GW of module and 5 GW of ancillary products manufacturing capacities. The ingot capacity is expected to commence production in March 2024, and the remaining capacities are expected to start production in the second half of 2024. Total capital expenditures for the initial phase of this investment is expected to be around RMB11.5 billion (approximately US$1.6 billion), most of which will occur in 2024.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented, "We are building new solar manufacturing capacity with cutting-edge technologies to meet the strong demand from our customers. Inner Mongolia has plenty of wind and solar resources and the local renewable energy penetration is increasing steadily, helping us reduce the carbon footprint of our supply chain. In addition, Inner Mongolia has abundant supply of power, polysilicon, and quartzite. By further increasing the level of vertical integration throughout our manufacturing processes, we gain greater control over technology, cost, and supply chain and build on our long-term competitive advantage."

In addition, Canadian Solar's previously announced polysilicon investment in Qinghai, China, has not launched as planned due to changes related to local power supply. All investment projects are subject to change at the Company's discretion based on market and strategic considerations.