Singapore-based solar panel manufacturer Maxeon Solar Technologies has agreed to divest its non-US assets to focus solely on the US market.

The move aims to leverage the company's existing market presence and planned local manufacturing to drive growth and profitability.

The company will lease a building in Albuquerque, New Mexico, for five years up to 2029, with plans to initiate solar panel production in the 2GW capacity facility by early 2026.

The development is part of Maxeon's targeted approach to capitalise on opportunities within the US.

Maxeon's global strategy includes divesting its sales and marketing operations in Europe, the Middle East, Africa, Asia-Pacific and Latin America to TCL Group, the parent company of its majority shareholder.

This agreement-in-principle will integrate these divisions into the newly established TCL SunPower International.

The TCL Group is set to acquire Maxeon's manufacturing operations in the Philippines, further consolidating its position in the solar solutions sector.

The strategic moves are designed to establish a new global solar entity under TCL Group's umbrella, while Maxeon sharpens its focus on the US market.

The companies expect to sign definitive agreements by the end of 2024.

Post-transaction, Maxeon will remain an independent entity listed on NASDAQ, and will concentrate on serving the residential, commercial and utility-scale solar markets in the US.

Maxeon CEO George Guo stated: “As Maxeon intensifies its focus on the US market, our priority is to further expand our growing residential and commercial partner network and support our well-established base of utility-scale customers.

“This strategic re-focusing of our business is designed to keep us closer and more attuned to the needs of our US customer base, allowing us to leverage Maxeon's deep experience and top-tier reputation for product innovation and quality that are a result of almost 40 years of technology leadership and investments in intellectual property.”

Maxeon was launched in 2020 as an independent company following its spin-off from US-based SunPower.

Maxeon operates the SunPower brand in all global markets and the Maxeon brand in the US, Canada and Japan.

The company designs, manufactures and sells solar products and solutions in more than 100 countries via a global sales network of 1,700 sales and installation partners.