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T1 Energy Advances $850 Million Solar Cell Hub in Milam County, Texas

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T1 Energy Taps Yates Construction for $850M Texas Solar Cell Facility

The landscape of American renewable energy is undergoing a tectonic shift, and at the epicenter of this transformation is Milam County, Texas. T1 Energy (formerly known as FREYR Battery) is moving forward with its ambitious G2_Austin project—a $850 million solar cell manufacturing facility designed to anchor a fully domestic supply chain. By bridging the gap between raw materials and finished solar modules, T1 Energy is positioning itself as a cornerstone of the “Made in America” energy movement.

T1 Energy’s 5 GW G2_Austin solar manufacturing facility in Milam County, Texas, began its initial phase of construction in December 2025, with Yates Construction leading site preparation and foundation work. The $850 million project is scheduled to begin equipment installation in mid-2026, targeting full commercial operations by the fourth quarter of 2026.

A Landmark Partnership: Construction and Engineering

The project gained significant momentum following the selection of Yates Construction to oversee critical pre-construction services and site preparation in 2025. As a leader in large-scale industrial projects, Yates is tasked with transforming a 100-acre site within the Sandow Lakes Advanced Manufacturing and Logistix Campus into a high-tech manufacturing hub.

Complementing this effort is the SSOE Group, serving as the project’s engineering partner. Together, these firms are designing a facility that is not only a marvel of production capacity but also a model of efficiency. The G2_Austin plant is engineered to produce high-efficiency TOPCon (Tunnel Oxide Passivated Contact) solar cells, which represent the current “gold standard” in the industry for their ability to convert more sunlight into electricity compared to traditional cells.

Strategic Location: The Power of Sandow Lakes

The choice of Milam County was no coincidence. The Sandow Lakes campus offers a unique industrial ecosystem, featuring robust power infrastructure, existing rail access, and proximity to major Texas transit corridors. By securing a lease with an option to buy this 100-acre parcel, T1 Energy has ensured it has the physical room to grow.

The facility is designed for a total capacity of 5 gigawatts (GW). To put that into perspective, 5 GW is enough capacity to power millions of homes and places G2_Austin among the largest solar production sites in the United States. This scale is vital for T1 Energy’s broader goal: ensuring that their G1_Dallas module assembly plant in Wilmer, Texas, is fed by domestically produced cells, rather than relying on international imports.

The Economic Engine: Jobs and Tax Abatements

The local impact of G2_Austin extends far beyond energy statistics. The Milam County Commissioners Court recently made headlines by unanimously approving a long-term tax abatement package for the project. This 30-year agreement serves as a powerful incentive for T1 Energy to maintain its roots in the region.

However, these incentives are strictly performance-based. To maintain the tax benefits, T1 Energy must meet specific “clawback” provisions regarding:

Investment Levels: A minimum capital expenditure of $700 million (with the project projected to reach $850 million).

Employment Milestones: The creation of up to 1,800 advanced manufacturing jobs.

These roles will range from high-level chemical and electrical engineers to specialized plant operators and logistics managers. For a rural area like Milam County, the influx of nearly 2,000 high-paying technical jobs represents a generational economic shift.

A Vision for the Future: 2026 and Beyond

During the initial unveiling of the facility, T1 Energy Chairman and CEO Daniel Barcelo emphasized that G2_Austin is a “critical part of the journey.” The company’s roadmap sees the facility starting commercial operations in the second half of 2026.

“We are intent on implementing the next phases of our plan to become a preeminent American provider of integrated solar and battery storage solutions,” Barcelo stated. “Our groups are progressing well to increase solar module manufacturing at G1_Dallas, progress work on our proposed G2_Austin solar cell factory, and lead a global corporate transition to build a robust cash flow business.”

By 2025 and 2026, the company envisions a “dramatic opportunity for expansion,” driven by federal incentives like the Inflation Reduction Act (IRA), which rewards companies for domestic sourcing. By manufacturing cells in Texas, T1 Energy helps its customers qualify for the 10% Domestic Content Bonus Credit, making their solar solutions more competitive than cheaper foreign alternatives.

Scaling the Supply Chain

A major challenge for the U.S. solar industry has been the “missing middle”—the lack of domestic cell production. While many companies can assemble modules (panels), the cells themselves are often imported. T1 Energy is solving this by integrating its operations.

The G2_Austin facility will require an expansion of the domestic supply chain for polysilicon and glass. T1 has already begun exploring partnerships to ensure that every component—from the silicon wafers to the protective glass—is sourced from American providers. This holistic approach reduces logistical risks and shields the company from the volatility of international trade policies.

Texas continues to see significant growth in utility-scale solar development, with multiple large-scale projects underway across the state, including Zelestra’s solar projects in Texas
.

Factsheet: G2_Austin Solar Manufacturing Facility

Parent Company: T1 Energy

Project Name: G2_Austin

Investment: Up to $850 Million

Total Capacity 5 GW (Solar Cells)

Location: Sandow Lakes, Milam County, TX

Job Creation: 1,800 Advanced Manufacturing Roles

Construction Lead: Yates Construction

Engineering Lead: SSOE Group

Operational Target: Q4 2026

The G2_Austin facility is more than just a factory; it is a statement of American industrial resilience. As T1 Energy moves through the pre-construction phase and into heavy vertical construction, the eyes of the energy sector remain fixed on Texas. If successful, T1 will have created a blueprint for how private investment, local government support, and strategic engineering can build a sustainable, high-tech future for the American heartland.

Read also: Natron Energy to Build $1.4B Sodium-Ion Battery Manufacturing Facility in North Carolina

Read also: El Paso City Council Greenlights Advanced Manufacturing District at El Paso Int’l Airport

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