Canadian Solar Inc. (NASDAQ:CSIQ) rallied 12% on Monday after announcing that it will resume direct management of its U.S. business activities while continuing to shift more of its manufacturing footprint back to North America.

The company plans to establish new joint ventures with U.S. investors and its majority-owned unit, CSI Solar Co., Ltd. As part of the restructuring, Canadian Solar will own a 75.1% controlling interest in CS PowerTech, which will oversee American production and sales of solar modules, solar cells, and advanced energy storage solutions.

The Ontario-based firm will also purchase from CSI Solar a 75.1% stake in several overseas facilities that provide support for its U.S. operations. The assets are valued at roughly $50 million, though the price may be adjusted to reflect changes in net asset value between the initial valuation and the closing date.

Canadian Solar said the moves underscore its commitment to strengthening its North American presence and building a “resilient, transparent, and diversified domestic supply chain.” The company expects the initiative to generate thousands of new manufacturing jobs across the U.S.

Because the transaction involves affiliated parties, it still requires approval from Canadian Solar’s board as well as CSI Solar’s minority shareholders. The company added that details of the plan may evolve depending on future regulatory guidance and other factors.

Looking ahead, Canadian Solar aims to use its 24 years of global manufacturing experience to form additional joint ventures with U.S. partners across the solar, energy storage, and power industries as part of a broader reshoring strategy.

Canadian Solar stock price

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