The world’s largest manufacturer of photovoltaic (PV) cells, thin-film or otherwise, is United States-based First Solar Inc. The company is expanding rapidly with production facilities in Germany, Malaysia, and now is in the final stages of negotiation for building a 2 gigawatt (GW) PV plant in China, which would likely be the world’s largest when completed in 2019. The plant would supply electricity for roughly 1.6 million United States homes—even more Chinese homes.

First Solar is the first company to produce more than 1 GW of PV modules in a year. In 2009 it produced 1.1 GWs of PV modules. It expects to produce 1.4 GWs in 2010 and 2.1 GWs of PV in 2011 to meet the needs of its clients.

The company signed a memorandum of understanding with Chinese officials to build the 25-square mile PV installation in Inner Mongolia in Sept. 2009. However, The Washington Post reported on Aug. 13 that there is growing skepticism as to whether or not First Solar, which was supposed to break ground in June, will be able to move forward with the project.

According to the Post, Chinese PV manufacturers complained that the United States-based company won such a lucrative contract, which is valued between $5 billion and $6 billion. And some government officials in the region have said they will open the project to competitive bidding.

Indeed, Steve Ye, CFO of Solar Enertech, a Chinese PV manufacturer, told the Post that Mongolian officials are talking about the project with lots of companies, including his. He added, "I don't think the memorandum means anything. My guess is it was for show."

First Solar remains confident it will move forward with the project. On Aug. 24, company spokesperson Brandon Mitchner, told Bloomberg that First Solar is in talks with China regarding guaranteed above-market electricity rates to support renewable energy projects in the country. Mitchner said the company thinks China will set electricity prices high enough to make the project viable.

Even if the China project failed or the delay continues, First Solar told the Post that it is experiencing strong demand for its products in other markets. In light of the additional demand and problems with Chinese officials, First Solar said it is likely that construction on the project won’t begin until 2011.