TOYO Secures Strategic Polysilicon Supply with a U.S. Polysilicon Manufacturer

Rhea-AI Summary

TOYO (Nasdaq: TOYO) announced on January 7, 2026 that it signed a one-year sales contract with a U.S. polysilicon manufacturer to supply domestically produced polysilicon for its solar manufacturing operations.

The agreement adds U.S.-sourced polysilicon to TOYO's existing non-FEOC overseas supply, reinforcing a dual-source strategy to support cell manufacturing in Ethiopia and module production in the United States, while aligning supply with U.S. regulatory expectations and supporting the company’s U.S. expansion.

Positive

• One-year sales contract securing U.S.-sourced polysilicon
• Adds U.S. polysilicon to existing non-FEOC overseas supply (dual-source)
• Supports both Ethiopia cell manufacturing and U.S. module production
• Aligns supply with U.S. regulatory expectations to aid market access

Negative

• Sales contract term limited to one year, offering short-term supply certainty

Key Figures

Contract term 1 year Duration of polysilicon sales contract with U.S. supplier

Market Reality Check

$6.02 Last Close

Volume Volume 18,616 vs 20-day average 27,944, showing lighter trading ahead of this news. low

Technical Shares at $5.76, trading above 200-day MA of $4.90 but still below the $8.39 52-week high.

Peers on Argus

Solar peers showed mixed to negative moves, with ZEO -1.77% and FTCI -5.09% while several others were flat, suggesting this announcement is more company-specific than a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 08	U.S. unit acquisition	Positive	-5.1%	Bought remaining 24.99% of TOYO Solar LLC to gain full ownership.
Nov 03	EU partnership	Positive	-3.1%	Strategic partnership with Voltec Solar to supply low‑carbon cells in Europe.
Oct 14	Houston facility launch	Positive	+6.0%	Houston module plant began commercial operations with up to 1 GW capacity.
Sep 08	Earnings update	Positive	-5.1%	First‑half 2025 results with higher outlook and expanding global capacity.
Sep 04	Brand acquisition	Positive	-12.9%	Acquisition of VSUN brand to bolster U.S. utility‑scale solar presence.

Pattern Detected

TOYO has often seen negative price reactions following seemingly positive strategic and expansion announcements, with only one recent event showing a positive alignment.

Recent Company History

Over the last few months, TOYO has focused on expanding its global solar footprint. It acquired the remaining 24.99% of TOYO Solar LLC and is developing a 2.5 GW Texas module facility, entered Europe via a Voltec Solar partnership, and commenced commercial operations at a Houston plant designed for up to 1 GW of modules annually. Earlier, it reported first-half 2025 results with $139 million revenue and a 2 GW Ethiopia cell plant. Today’s U.S. polysilicon deal continues this build-out of integrated, diversified supply.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-10-20

TOYO has an active shelf registration on Form F-3, amended on Oct 20, 2025 via Form F-3/A to add the auditor’s consent. The amendment notes securities may be sold from time to time after effectiveness under this framework, with no usage yet reported in recent filings.

Market Pulse Summary

This announcement secures a one‑year U.S. polysilicon supply contract, reinforcing TOYO’s dual‑source strategy alongside non‑FEOC overseas materials. It supports cell production in Ethiopia and module manufacturing in the United States, aligning with U.S. regulatory expectations and TOYO’s broader expansion across Texas and Europe. Investors may watch how this agreement translates into utilization at the company’s GW‑scale facilities and its ability to meet growing U.S. solar demand.

Key Terms

polysilicon technical

"it has signed a sales contract with a U.S. polysilicon manufacturer"

Polysilicon is a high-purity form of silicon used as the basic raw material to make solar panels and semiconductor components; think of it as the refined steel that carmakers use. It matters to investors because its availability, production cost and price affect the profitability and supply chains of large industries like solar power and electronics, so changes in polysilicon supply or cost can move company margins and stock valuations.

foreign entity of concern regulatory

"adds U.S.-sourced polysilicon to TOYO's existing non-Foreign Entity of Concern"

A foreign entity of concern is a company, organization, or government outside the country that regulators see as posing national security, economic, or regulatory risks — for example because of ownership, links to sensitive technologies, or involvement in restricted activities. For investors it signals potential legal limits, sanctions, or forced divestment; think of it like a risky tenant whose presence can limit what a landlord can do with a property and may reduce its value or marketability.

AI-generated analysis. Not financial advice.

TOKYO, Jan. 7, 2026 /PRNewswire/ -- TOYO Co., Ltd (Nasdaq: TOYO) (OTC: TOYWF),  ("TOYO" or the "Company"), a solar solution company, today announced that it has signed a sales contract with a U.S. polysilicon manufacturer(the "Supplier"), to secure domestically sourced critical raw materials for TOYO's solar manufacturing operations. This agreement adds U.S.-sourced polysilicon to TOYO's existing non-Foreign Entity of Concern ("FEOC") overseas supply, strengthening TOYO's dual-source strategy and ensuring a stable and regulatory compliant supply for its solar manufacturing operations.

Under the sales contract, the Supplier agreed to provide TOYO with polysilicon produced in the U.S., strengthening TOYO's ability to meet growing demand in the U.S. solar market. The sales contract has a term of one year. This partnership establishes a robust and diversified polysilicon supply chain, supporting both TOYO's cell manufacturing in Ethiopia and module production in the United States.

Strategic Advantages of the Agreement

U.S. Polysilicon Supplier: The Supplier is recognized as the leading polysilicon producer in the United States, offering significant scale and a proven track record of reliability.

Domestic Supply Alignment: Sourcing polysilicon domestically enhances TOYO's alignment with U.S. regulatory expectations and supports strategic operational and market objectives.

Resilient and Diversified Supply Chain: Combining U.S.-sourced polysilicon from the Supplier with non-FEOC overseas supply, TOYO has built a robust dual-source supply chain capable of efficiently meeting growing U.S. solar demand.

Support for U.S. Market Expansion: The supply of polysilicon from the Supplier underpins TOYO's ongoing investment in U.S. manufacturing capacity, aligning with its mission to be a leading solar supplier in the U.S. market.

"Partnering with a leading polysilicon supplier in the U.S., gives TOYO a strategic advantage in building a robust and policy‑aligned supply chain," said Junsei Ryu, CEO and Chairman of TOYO. "This agreement strengthens our U.S. expansion by increasing access to domestic materials, positioning TOYO to deliver cost‑effective and sustainable solar solutions to the American market."

About TOYO Co., Ltd.

TOYO is a solar solutions company committed to becoming a full-service solar solutions provider in the global market, integrating upstream production of wafers and silicon, midstream production of solar cells, downstream production of photovoltaic modules, and potentially other stages of the solar power supply chain. TOYO is well-positioned to produce high-quality solar cells at a competitive scale and cost.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "look forward to," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section entitled "Risk Factors" in TOYO's annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in TOYO's subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof. TOYO specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise. Readers should not rely upon the information on this page as current or accurate after its publication date.

Contact Information:

For TOYO Co., Ltd.
IR@toyo-solar.com

Crocker Coulson
Email: crocker.coulson@aummedia.org
Tel: (646) 652-7185

View original content:https://www.prnewswire.com/news-releases/toyo-secures-strategic-polysilicon-supply-with-a-us-polysilicon-manufacturer-302655110.html

SOURCE TOYO Co., Ltd

FAQ

What did TOYO announce on January 7, 2026 about polysilicon supply?

TOYO announced a one-year sales contract with a U.S. polysilicon manufacturer to supply domestically produced polysilicon for its manufacturing operations.

How does TOYO's new contract affect its supply chain and manufacturing (TOYO)?

The contract adds U.S.-sourced polysilicon to TOYO's non-FEOC overseas supply, creating a dual-source chain for cells in Ethiopia and modules in the U.S.

Which markets and operations does the U.S. polysilicon supply support for TOYO?

The supply underpins TOYO's U.S. module production and supports cell manufacturing in Ethiopia, aiding U.S. market expansion.

What is the duration of the polysilicon sales contract announced by TOYO (TOYO)?

The sales contract has a stated term of one year.

Why is sourcing U.S.-sourced polysilicon important for TOYO (Nasdaq: TOYO)?

Domestic sourcing enhances alignment with U.S. regulatory expectations and supports strategic operational and market objectives in the U.S.