US firm becomes world's most valuable solar firm after Chinese rivals slip

A US company has become the world's most valuable solar manufacturer for the first time since 2018, as Chinese rivals suffer from a profit-slashing price war and an onslaught of trade barriers erected by Washington.

First Solar Inc. gained 1.5% Friday to end trading with a market capitalisation of $21.15 billion. The move higher allowed the Arizona-based company to overtake Sungrow Power Supply Co., which saw its shares fall 4.2% Friday in Shenzhen to put its value at about $20.85 billion.

It's the first time since 2018 a Chinese company hasn't been the most valuable solar equipment maker. The country dominates global production of panels, and controls more than 80% in every step of the supply chain.

But China's build-up of factories has come at a cost as capacity has surpassed global demand, leading to falling prices and shrinking profit margins. Longi Green Energy Technology Co., another leading Chinese manufacturer, posted a net loss of 2.35 billion yuan ($325 million) in the first quarter after netting a profit of 3.64 billion yuan the same period of 2023.