TOYO’s 4-Gigawatt Ethiopian Plant Resumes Cell Shipments to the United States
Key Facts
TOYO said U.S. Customs and Border Protection released shipments of solar cells manufactured at its facility in Ethiopia after reviewing supply-chain documents submitted by the company. The decision allows the shipments to leave detention, after the agency had halted them in May over suspected forced-labor concerns. The company said in its statement that the release came “after the agency’s review of the supply-chain documents submitted by TOYO.” The shipments had been subject to a customs review separate from the broader trade investigation by the U.S. Department of Commerce into completed solar products in Ethiopia. The release removes a direct obstacle for the company but does not end that broader investigation.
The detention began with two notices TOYO received on May 27 and 28, 2026, from U.S. Customs. The company estimated the detained volume at about 0.094 megawatts, with a total value of $13,770. In its filing, it said the agency was reviewing the company’s supply-chain documents. TOYO then announced the release of the shipments after the review of those documents was completed, according to its statement. This means the release concerned the specific shipments covered by the statement, while the broader trade matter remained under review by the Department of Commerce.
The operational significance of the decision reflects the size of TOYO’s Ethiopian facility, which the company said reached production capacity of 4 gigawatts in October 2025. It added that it had been using the full capacity of its cell factories in Ethiopia before the customs review began in May 2026. But the company said cell sales were affected by the investigation, leading to a decline in revenue from those products in June 2026. The shipment review therefore coincided with pressure on its cell business, according to the company’s filing. The release may restore the flow of the shipments covered by the decision, while the outcome of the trade investigation remains a separate factor relevant to its U.S. operations.
The U.S. Department of Commerce began an Ethiopia-wide investigation on July 17, 2026, into whether completed solar cells and modules there, using Chinese parts, circumvent existing trade orders on Chinese solar cells. This investigation differs from the customs review of supply-chain documents for the TOYO shipments that were released. In its outlook issued on September 28, the company said the customs review and other U.S. trade policy issues create “significant uncertainty” about results in the second half of 2026. The company did not provide quarterly financial guidance or specific revenue or net income figures, but it expected to achieve EBITDA during the second half. According to that filing, the company still had no detailed financial estimates for the period.
These developments come as TOYO has binding agreements to supply solar modules to the United States worth about $240 million in total, according to the company’s September 28, 2026, filing. Deliveries under those agreements are scheduled to continue through the first half of 2027. In separate data, U.S. imports from Ethiopia of all goods totaled $104.9 million in August 2026, compared with $198.3 million in July and $247.2 million in June. These figures cover all goods and are not limited to solar products. TOYO shares closed at $3.82 on October 28, after closing at $3.81 the previous day.
In the broader U.S. trade context, the Census Bureau’s advance estimate showed the goods trade deficit at $134.9 billion in September 2026, up 2.1% from $132.1 billion in August. The deficit widened by $2.8 billion during the month, as goods imports rose $8.1 billion to $344.1 billion and exports increased $5.3 billion to $209.2 billion. This is a goods-only reading, released on October 28, and is not the U.S. trade balance in goods and services. The latest published figure for that balance showed a deficit of $105.6 billion in August. The Census Bureau set November 27, 2026, as the release date for the next advance estimate of international trade in goods; the Department of Commerce intends to issue its preliminary determination in the Ethiopia investigation by December 10, 2026, and its final determination by May 10, 2027.