US Customs Intensifies Uyghur Forced Labor Enforcement on Solar Imports, Reportedly Detaining Hanwha Cells from South Korea
Key Insights
Clean Energy Associates warns of heightened UFLPA enforcement against solar PV products, with "electronics" detentions reaching a six-month high in June.
Hanwha Solutions' solar cells produced in South Korea have reportedly been detained at the US port of Long Beach since mid-June, suspected of using Xinjiang polysilicon.
The detentions underscore ongoing supply chain scrutiny under the Uyghur Forced Labor Prevention Act, impacting even vertically integrated US manufacturers like Hanwha Qcells.
This development follows previous UFLPA actions against other solar manufacturers, signaling persistent challenges for global solar supply chains entering the US market.
US Customs and Border Protection (CBP) has reportedly detained solar cells manufactured by Hanwha Solutions in South Korea, signaling a renewed and intensified enforcement of the Uyghur Forced Labor Prevention Act (UFLPA) against solar photovoltaic (PV) imports. This development, which saw Hanwha's cells held at the Port of Long Beach since mid-June over suspicions of links to forced labor polysilicon from China's Xinjiang region, comes as Clean Energy Associates (CEA) warns clients of a heightened risk of UFLPA actions, particularly under a potential future Trump administration. The incident underscores the persistent challenges and heightened scrutiny facing global solar supply chains seeking to enter the lucrative U.S. market, potentially disrupting established import channels and impacting domestic manufacturing strategies.
Christian Roselund, Senior Policy Analyst at CEA, highlighted in a LinkedIn post on Tuesday, August 5, that "electronics" detentions, a category encompassing solar products and batteries, surged to US$15.6 million in June, marking the highest level since October 2023. Roselund noted a six-month period of relative quiet before this recent uptick, suggesting a potential resurgence in enforcement activity. This trend is particularly concerning for the solar industry, which has invested heavily in diversifying supply chains to comply with UFLPA regulations enacted in June 2022 by former President Joe Biden.
The report from Korean news outlet Dong-A-Ilbo on Monday, August 4, first brought the Hanwha detentions to light. Hanwha, a critical player in the US solar manufacturing landscape, stated it is cooperating with US authorities by providing requested documentation. Hanwha Qcells is currently constructing a 3.4GW vertically integrated manufacturing plant in Cartersville, Georgia, designed to produce ingots through solar panels. This facility, alongside its existing 5.1GW module assembly plant in Dalton, Georgia, positions Hanwha as a cornerstone of the burgeoning US domestic solar supply chain. The detention of South Korean-produced cells raises questions about the extent of supply chain traceability required by CBP, even for components manufactured outside China.
Hanwha's situation is not isolated. Last year, Maxeon faced similar detentions for modules produced in Mexico and shipped to the US. Furthermore, Donghai JA Solar Technology Co., a subsidiary of JA Solar, was added to the UFLPA entity list by the US Department of Homeland Security (DHS) in January 2024, effectively banning its goods from the US. While a subsequent investigation by Europe’s Solar Stewardship Initiative (SSI) indicated the Xinjiang facility linked to JA Solar’s subsidiary had ceased production in 2018, these instances collectively underscore the stringent and evolving enforcement landscape. The renewed focus on UFLPA compliance demands continuous vigilance and robust due diligence from all participants in the global solar supply chain.