On a humid day in February, a small group of workers huddled in front of a large solar panel factory inside Thailand’s biggest manufacturing hub in the eastern coastal province of Chonburi, home to some of the world’s top solar panel-producing companies.
The men and women, mostly in their twenties, all hoped to land a job on a production line assembling solar cells into panels destined for export.
They knew they may not hold the job for very long after reading complaints of former employees on social media about work being regularly cut when orders were low.
But the company promised fair pay and, needing work, they were willing to take the risk.
That risk is growing, as Thailand’s solar industry has become caught in an escalating trade war between the US and China, with Thai solar workers paying the price.
Large Chinese companies dominate Thailand’s solar manufacturing industry, which produces solar cells and panels for export to the US market.
But as Washington erects trade barriers to protect its homegrown solar sector from a rising tide of cheap Chinese imports, Thailand’s industry is being squeezed.
Solar manufacturers in Southeast Asia’s second-largest economy that rely heavily on Chinese components are now facing nearly 400% tariffs to export their products to the US.
Analysts say the tariffs threaten to hurt Thailand’s manufacturing sector and its workers, and could have a knock-on impact on solar rollout in the country. But the changing trade landscape also creates an opportunity for producers to find new markets, including by accelerating solar deployment and the energy transition across the Southeast Asian region.
The heat of the solar trade war
For more than a decade, the US has waged a tariff war on growing imports of cheap Chinese solar panels, which it says harm its domestic industry.
China’s mass production of solar cells and modules has enabled the expansion of clean energy globally. The cost of solar panels has declined by 90% in the past decade. But China’s subsidised and cut-price solar production has also led to accusations of unfair trade practices.
In response, Chinese manufacturers relocated the final production stages to neighbouring Asian countries in an attempt to avoid the US import tax, turning Southeast Asia into a major solar-panel assembly hub and export base.
As Chinese exports of solar components to Vietnam, Thailand, Malaysia and Cambodia boomed, so did US imports of Southeast Asian solar panels.
By 2023, 80% of US solar module imports came from those four countries. Nearly a quarter came from Thailand alone.
But in recent months, several Chinese manufacturers with factories in Southeast Asia suspended some of their operations in the region, after the US announced a string of antidumping duties on solar imports from the four countries in a bid to close the loophole.
Thousands working in Thailand’s solar factories – most of whom had left the agricultural north of the county to seek better-paid employment in an industry which promised decent jobs – were put on leave or suddenly dismissed.
Climate Home News analysed local media reports and social media posts relating to worker dismissals at three leading solar manufacturers with factories in the Eastern Economic Corridor, the country’s largest manufacturing zone: Chinese companies Runergy and Trina Solar, one of the world’s largest solar PV manufacturing firms, and Canadian Solar, which has long conducted most of its manufacturing operations in China.
We found that close to 8,000 full-time staff and subcontracted workers were either temporarily or permanently dismissed in 2024. Over that time, US officials investigated a complaint from American manufacturers that companies with factories in Southeast Asia were dumping subsidised and unfairly cheap products on the US market.
An industry losing its grip on its biggest export market
Last month, US trade officials unveiled hefty tariffs of at least 375% on imports of solar cells from Thailand.
The US International Trade Commission, a bi-partisan government agency, is due to make a final decision about the tariffs in June. In private, analysts say they are likely to be approved.
The Institute for Energy Economics and Financial Analysis (IEEFA) recently found that any price increases beyond 250% would make most Southeast Asian imports “untenable”.
“Any company in any country where the combined tariffs is greater than 250% will likely see their orders decline or get cancelled,” Grant Hauber, of IEEFA, told Climate Home.
Over the past year, US officials’ tariff deliberations rocked Thailand’s solar industry.
“There has been a broad suspension of operations among Chinese companies in Southeast Asia, including Thailand, with many closures likely to be permanent,” said Linxiao Zhu, a research fellow at the Oxford Institute for Energy Studies.
“The region risks losing a significant share of its solar manufacturing capacity due to the loss of access to the US market.”
“Thailand’s solar manufacturing industry faces some serious challenges,” agreed Forbes Chanthorn, BloombergNEF’s Thailand energy transition analyst based in Singapore. “It is losing its grip on some of its biggest export markets without any short-term alternatives in sight.”
And the situation could go from bad to worse as US President Donald Trump threatens an additional 37% import tariff on all goods from Thailand – one of the highest rates in Washington’s planned universal tariff onslaught, now paused until June. If applied, this would push the tariffs on Thailand’s solar cells up to 426%.
In an interview, Charuwan Phipatana-Phuttapanta, a solar expert at Thailand’s energy ministry, acknowledged that the tariffs will impact employment in the country’s solar industry.
Workers fall victim to tariffs
Spanning three provinces on Thailand’s eastern coast, the Eastern Economic Corridor (EEC) is key to the government’s plan to transform the area into an economic powerhouse.
Enticed by generous tax breaks and cheap labour, international companies have flocked here to manufacture everything from air conditioners to batteries for electric vehicles and solar panels for the regional and global markets.
Several leading Chinese solar manufacturing companies set up shop in the EEC nearly a decade ago. Soon, Thailand’s solar exports to the US soared.
But in June 2024, a two-year US tariff waiver on solar products from Southeast Asia – introduced by Joe Biden to boost solar deployment in the country – came to an end. Companies in the region importing silicon wafers from China to make solar cells for export to the US became subject to tariffs.
In the days that followed, several manufacturers slowed down or suspended operations, letting go of staff to adjust to the new tax regime, Amnuay Ngamnet, director of Rayong Labour Protection and Welfare office, the labour ministry’s local representative, told Climate Home.
In Rayong alone, the most southern of the EEC’s three provinces, 3,200 full-time workers at five solar factories were put on leave between 2022-2024, according to official data.
Videos posted on TikTok in recent weeks show deserted parking lots and unusually quiet grounds around some solar factories.
“No matter how good you are, if life stumbles, you cannot succeed. Goodbye,” one solar worker posted on the social media platform with a photo of a dismissal letter.
Amnat (whose name has been changed because of concerns that speaking to the media might affect his job prospects) was among thousands affected.
Like many others, the 39-year-old left his hometown in the agricultural northeastern region in 2022 to find a better-paid job at a solar plant in the EEC.
“It seemed like a promising industry. I hoped to spend years there,” Amnat told Climate Home over the phone. “But it didn’t turn out that way.”
Amnat worked as a subcontractor at a few Chinese solar factories, eventually landing a staff position at Runergy, which manufactures solar cells and modules.
He worked six days a week and earned approximately 25,000 baht ($745) a month, way above the average income for unskilled workers.
But in October 2024, he was dismissed along with “almost all of the employees” at the factory, according to local media reports. Amnat told Climate Home the retrenchment affected nearly 3,000 workers.
Runergy did not respond to repeated requests for comment.
The same month, Runergy opened its first module manufacturing plant in the US to keep supplying the American market – one of a number of solar companies hoping to benefit from tax credits under the Inflation Reduction Act (IRA).
As a permanent employee, Amnat was compensated 75% of his monthly wage, a lifeline during the three months it took him to find another job. But others were not so lucky.
Thousands of workers hired as subcontractors and benefiting from fewer rights were left without work or pay overnight as companies suspended some of their operations.
At risk of labour rights violations
“After leaving the solar company, my girlfriend was left unemployed for two months. It was difficult for us,” a TikTok user who had complained about the dismissals on social media, told Climate Home. The subcontracting company employing her made her sign a dismissal letter, absolving it of paying the compensation she was entitled to, he explained.
Bunyuen Sukmai, a local labour lawyer and rights activist, told Climate Home “most workers are not aware that the practice violates their rights” despite being routinely deployed.
In the workers’ housing estate, a few kilometres outside the industrial zone, the offices of subcontracting firms are flanked by hair salons and restaurants. A steady stream of job-seekers fill in application forms and scan QR codes to follow job announcements on social media.
“Subcontractors are usually the first to be affected by industry changes. They usually receive lower benefits and are most at risk of having their rights violated,” said Sukmai. But legal cases over unfair dismissal are rare as few workers have the resources to go down the judicial route, he added.
A representative of Trina Solar in Thailand declined to respond to questions. Canadian Solar did not respond to Climate Home’s repeated requests for comment.
However, in a letter dated June 2024 and shared on social media, Canadian Solar said it had paused operations at one of its factories to make changes to its production line and improve machinery. “Due to the current economic conditions and trade competition, the company needs to adjust to the market situation and the direction of the domestic and international economy,” it said.
It added that it had “great confidence in the potential and economic conditions of Thailand” where it intended to continue operating.
In search of new markets
Some large Chinese panel-makers have already started setting up production lines in Indonesia and Laos, which are not currently affected by the US solar import duties.
The Middle East has also emerged as a growing destination for Chinese solar investments, including for the production of key solar components such as polysilicon ingots and wafers.
“These efforts are designed to forge a supply chain completely outside of China serving the Middle East, the US, and other markets that may be subject to tariff risks,” Zhu wrote in a recent report for The Oxford Institute for Energy Studies.
To continue operating in Thailand, analysts say large solar manufacturers will need to seek new export markets outside of the US.
In the short-term, exports could be redirected to the European Union and India. The Thai government is racing to finalise a free-trade deal with the EU, where demand growth for solar equipment may be stronger than in the US, Laura Schwartz, a senior Asia analyst at risk intelligence company Verisk Maplecroft, told Climate Home.
“However, over half of China’s solar cell and module exports already go to Europe, so Thai exports would face stiff competition,” said Schwartz. And Indian solar developers will have to use locally made solar cells in government projects from June 2026.
But the tariffs could also mark “a turning point” for Southeast Asia’s solar industry, which could focus on supplying emerging markets in Africa and South America, and urgently accelerate the region’s own solar deployment, said Christina Ng, director of the Energy Shift Institute, a think-tank focused on Asia’s energy transition.
Thailand is dependent on gas for electricity generation but the government has set out plans for 51% of its electricity to come from renewables by 2037, with most of the additional renewable power expected from solar. Only around 3% of Thailand’s electricity currently comes from solar.
Thai companies assembling solar modules in the country are already calling for more incentives to expand a homegrown supply chain.
Krit Pornpilailuck, CEO of Solar PPM, fears Chinese solar manufacturers that can’t export their goods to the US “will flood the Southeast Asian market and plunge the price” of modules.
To protect the industry, Pornpilailak wants to see more support for Thai manufacturers to produce solar cells and other upstream components domestically.
“Thailand has more than six million tonnes of solar-grade quartz reserves that could be used to produce polysilicon – the key ingredient to produce solar wafers,” said Phipatana-Phuttapanta, the government’s solar expert. Although developing the resources would require “technical expertise and high investment”, she added.
“This is a chance for [manufacturers] to move up the value chain – from being seen as mainly low-cost assemblers to becoming leaders in more advanced clean energy technologies,” said Ng. “If the region takes this moment seriously and diversifies, it won’t just weather the disruption; it will emerge more resilient and competitive.”
The post Solar squeeze: US tariffs threaten panel production and jobs in Thailand appeared first on Climate Home News.
Solar squeeze: US tariffs threaten panel production and jobs in Thailand
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Rudecindo Espíndola’s family has been growing corn, figs and other crops for generations in the Soncor Valley in northern Chile, an oasis of green orchards in one of the driest places on Earth – the Atacama desert.
Perched nearly 2,500 metres above sea level, his village, Toconao, means “lost corner” in the Kunza language of the Indigenous people who have lived and farmed the land in this remote spot for millennia.
“Our deep connection to this place is based on what we have inherited from our ancestors: our culture, our language,” said Espíndola, a member of a local research team that found evidence that people have inhabited the desert for more than 12,000 years.
This distant outpost is at the heart of the global rush for lithium, a silvery-white metal used to make batteries for electric vehicles (EV) and renewable energy storage that are vital to the world’s clean energy transition. The Atacama salt flat is home to about 25% of the world’s known lithium reserves, turning Chile into the world’s second-largest lithium producer after Australia.
For decades, the Atacama’s Indigenous Lickanantay people have protested against the expansion of the lithium industry, warning that the large evaporation ponds used to extract lithium from the brine beneath the salt flats are depleting scarce and sacred water supplies and destroying fragile desert ecosystems.
Espíndola joined the protests, fearing that competition for water could pose an existential threat to his community.
But last year, he was among dozens of Indigenous representatives who sat across the table from executives representing two Chilean mining giants to hammer out a governance model that gives Indigenous communities living close to lithium sites a bigger say over operations, and a greater share of the economic benefits.
A pioneering deal
The agreement is part of a landmark deal between state-owned copper miner Codelco and lithium producer the Sociedad Química y Minera de Chile (SQM) to extract lithium from the salt flats until 2060 through a joint venture called NovaAndino Litio.
The governance model that promises people living in Toconao and other villages around the salt flats millions of dollars in benefits and greater environmental oversight is the first of its kind in mineral-rich Chile, and has been hailed by industry experts as the start of a potential model for more responsible mining for energy transition metals.
NovaAndino told Climate Home News the negotiations with local communities represented an “unprecedented process that has allowed us to incorporate the territory’s vision early in the project’s design” and creates “a system of permanent engagement” with local communities.
The company added it will contribute to sustainable development in the area and help “the safeguarding of [the Lickanantay people’s] culture and environmental values”.
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For mining companies, such agreements could help reduce social conflicts and protests, which have delayed and stalled extraction in other parts of South America’s lithium-rich region, known as the lithium triangle.
“Argentina and Bolivia could learn a lot from what we’re doing [here],” said Rodrigo Guerrero, a researcher at the Santiago-based Espacio Público think-tank, adding that adopting participatory frameworks early on could prevent them from “going through the entire cycle of disputes” that Chile has experienced.
Justice at last?
As part of the governance deal, NovaAndino has pledged to adopt technologies that will reduce water use and mitigate the environmental impacts of lithium extraction.
It has also committed to hold more than 100 annual meetings with community representatives to build a “good faith” relationship, and an Indigenous Advisory Council will meet twice a year with the company’s sustainability committee to discuss its environmental strategy, company sources said. The meetings are due to begin next month.
To oversee the agreement’s implementation, an assembly – composed of representatives from all 25 signatory communities – will track the project’s progress. In addition, NovaAndino will hold one-on-one meetings with each community to address issues such as the hiring of local people and the protection of Indigenous employees.
Espíndola said the deal, while far from perfect, was an important step forward.
“Previously, Indigenous participation was ambiguous. Now we talk about participation at [every] hierarchical level of this process, a very strong empowerment for Indigenous communities,” said Espíndola, adding that it did not give local communities everything they had asked for. For instance, they will not hold veto power over NovaAndino’s decisions or have a formal shareholder role.
But after years of conflict with mining companies, a form of “participatory justice is being done”, he said.
Not everyone is convinced that the accord, pushed by Chile’s former leftist government, marks progress, however.
“Not in our name”
The negotiations have caused deep divisions among the Lickanantay, some of whom say greater engagement with mining companies will not stop irreparable damage to the salt flats on which their traditional way of life depends. Others fear the promise of more money will further erode community bonds.
In January 2024, Indigenous communities from five villages closest to the mining operations, including Toconao, blocked the main access roads to the lithium extraction sites. They said the Council of Atacameño Peoples, which represents 18 Lickanantay communities and was leading discussions with the company, no longer spoke for them.
Official transcripts of consultations on the extension of the lithium contracts and how to share the promised benefits reveal deep divisions. Tensions peaked when communities around the mining operations clashed over how to distribute the multimillion-dollar windfall, with villages closest to the mining sites demanding the largest share.
Eventually, separate deals establishing a new governance framework over mining activities were reached between Codelco and SQM with 25 local communities, including a specific agreement for the five villages closest to the extraction sites.
The division caused by the separate deal for the five villages “will cause historic damage” to the unity of the Atacama desert’s Indigenous peoples, said Hugo Flores, president of the Council of Atacameño Associations, a separate group representing farmers, herders and local workers who oppose the mining expansion.
Sonia Ramos, 83, a renowned Lickanantay healer and well-known anti-mining activist, lamented the fracturing of social bonds over money, and for the sake of meeting government objectives.
“There is fragmentation among the communities themselves. Everything has transformed into disequilibrium,” said the 83-year-old.
“[NovaAndino] supposedly has economic significance for the country, but for us, it is the opposite,” she said.
The company told Climate Home News it has “acted consistently” to promote “transparent, voluntary, and good-faith dialogue with the communities in the territory, recognising their diversity and autonomy, and always respecting their timelines and forms of participation”.
A one-off deal or a model for others?
The NovaAndino joint venture is a pillar of Chile’s strategy to double lithium production by 2031 and consolidate the copper-producing nation’s role in the clean energy transition as demand for battery minerals accelerates.
Chile’s new far-right president, José Antonio Kast, who was sworn in last week, promised to respect the lithium contracts signed by his predecessor’s administration – including the governance model.
Still, some experts say the splits over the new model highlight the need for legislation that mandates direct engagement and minimum community benefits for all large mining projects.
“In the past, this has lent itself to clientelism, communities who negotiate best or arrive first get the better deal,” said Pedro Zapata, a programme officer in Chile for the Natural Resource Governance Institute.
“This can be to the detriment of other communities with less strength. We cannot have first- and second-class citizens subject to the same industry,” he added.
The government is already negotiating two more public-private partnerships to extract lithium with mining giant Rio Tinto, which it said would include a framework to engage with Indigenous communities and share some of the revenues. The details will need to be negotiated between local people, the government and the company.
Sharing the benefits of mining
Under the deal in the Atacama, NovaAndino will run SQM’s current lithium concessions until they expire in 2030 before seeking new permits to expand mining in the region under a vast project known as “Salar Futuro” – a process which will require further mandatory consultations with communities.
Besides the participatory mechanism, the new agreement promises more money than ever before for salt flat communities.
Depending on the global price of lithium and their proximity to the mining operations, Indigenous communities could collectively receive roughly $30 million annually in funding – about double what SQM currently disburses under existing contracts.
When taking into account the company’s payments to local and regional authorities, contributions could reach $150 million annually, according to the government.
To access these resources, each community will need to submit a pipeline of projects they would like funding for under a complex arrangement that includes five separate financial streams:
- A general investment fund will distribute funding based on each village’s size and proximity to the mining sites
- A development fund will support projects specifically in the five communities closest to the extraction sites
- Contributions to farmers and livestock associations
- Contributions to local governments
- A groundbreaking “intergenerational fund” held in trust for the Lickanantay until 2060
For many isolated communities in the Atacama desert, financial contributions from mining firms have funded essential public services, such as healthcare and facilities like football pitches and swimming pools.
In the past, communities have used some of the benefits they received from mining to build their own environmental monitoring units, hiring teams of hydrogeologists and lawyers to scrutinise miners’ activities.
Espíndola said the new model could pave the way for more ambitious development projects such as water treatment plants and community solar energy projects.
Competition for water
The depletion of water resources is one of local people’s biggest environmental concerns.
To extract lithium from the salt flats, miners pump lithium-rich brine accumulated over millions of years in underground reservoirs into gigantic pools, where the water is left to evaporate under the sun and leaves behind lithium carbonate.
One study has shown that the practice is causing the salt flat to sink by up to two centimetres a year. SQM recently said its current operations consume approximately 11,500 to 12,500 litres of industrial freshwater for every metric ton of lithium produced.
NovaAndino has committed to significantly reduce the company’s water use by returning at least 30% of the water it extracts from the brine and eliminating the use of all freshwater in its operations within five years of obtaining an environmental permit.
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Cristina Dorador, a microbiologist at the University of Antofagasta, told Climate Home News that reinjecting the water underground is untested at a large scale and could impact the chemical composition of the salt flats.
Continuing to extract lithium from the flats until 2060 could be the “final blow” for this fragile ecosystem, she said.
Asked to comment on such concerns, NovaAndino said any new technology will be “subject to the highest regulatory standards”, and pledged to ensure transparency through “an updated monitoring system with the participation of Indigenous communities”.
High price for hard-won gains
For the five communities living on the doorstep of the lithium pools, one of the biggest gains is being granted physical access to the mining sites to monitor the lithium extraction and its impact on the salt flats.
That is a first and will strengthen communities’ ability to call out environmental harms, said Sergio Cubillos, the community president of Peine, the village closest to the evaporation ponds. It could also give them the means to seek remediation through the courts if necessary, Espíndola said.
Gaining such rights represents long-overdue progress, Cubillos said, but it has come at a high price for the Lickanantay people.
“Communities receiving money today is what has ultimately led to this division, because we haven’t been able to figure out what we want, how we want it, and how we envision our future as a people,” he said.
Main image: A truck loads concentrated brine at SQM’s lithium mine at the Atacama salt flat in Chile (Photo: REUTERS/Ivan Alvarado)
The post Landmark deal to share Chile’s lithium windfall fractures Indigenous communities appeared first on Climate Home News.
Landmark deal to share Chile’s lithium windfall fractures Indigenous communities
Diplomats will hold a series of informal meetings this year in a bid to revive stalled talks over a global treaty to curb plastic pollution, before aiming to reconvene for the next round of official negotiations at the end of 2026 or early 2027.
Hoping to find a long-awaited breakthrough in the deeply divided UN process, the chair of the talks, Chilean ambassador Julio Cordano, released a roadmap on Monday to inject momentum into the discussions after negotiations collapsed at a chaotic session in Geneva last August.
Cordano wrote in a letter that countries would meet in Nairobi from June 30 to July 3 for informal discussions to review all the components of the negotiations, including thorny issues such as efforts to limit soaring plastic production.
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The gathering should result in the drafting of a new document laying the foundations of a future treaty text with options on elements with divergent views, but “no surprises” such as new ideas or compromise proposals. This plan aims to address the fact that countries left Geneva without a draft text to work on – something Cordano called a “significant limitation” in his letter.
“Predictable pathway”
The meeting in the Kenyan capital will follow a series of virtual consultations every four to six weeks, where heads of country delegations will exchange views on specific topics. A second in-person meeting aimed at finding solutions might take place in early October, depending on the availability of funding.
Cordano said the roadmap should offer “a predictable pathway” in the lead-up to the next formal negotiating session, which is expected to take place over 10 days at the end of 2026 or early 2027. A host country has yet to be selected, but Climate Home News understands that Brazil, Azerbaijan or Kenya – the home of the UN Environment Programme – have been put forward as options.
Countries have twice failed to agree on a global plastics treaty at what were meant to be final rounds of negotiations in December 2024 and August 2025.
Divisions on plastic production
One of the most divisive elements of the discussions remains what the pact should do about plastic production, which, according to the UN, is set to triple by 2060 without intervention.
A majority, which includes most European, Latin American, African and Pacific island nations, wants to limit the manufacturing of plastic to “sustainable levels”. But large fossil fuel and petrochemical producers, led by Saudi Arabia, the United States, Russia and India, say the treaty should only focus on managing plastic waste.
As nearly all plastic is made from planet-heating oil, gas and coal, the sector’s trajectory will have a significant impact on global efforts to reduce greenhouse gas emissions.
Countries still far apart
After an eight-month hiatus, informal discussions restarted in early March at an informal meeting of about 20 countries hosted by Japan.
A participant told Climate Home News that, while the gathering had been helpful to test ideas, progress remained “challenging”, with national stances largely unchanged.
The source added that countries would need to achieve a significant shift in positions in the coming months to make reconvening formal negotiations worthwhile.
Deep divisions persist as plastics treaty talks restart at informal meeting
Jacob Kean-Hammerson, global plastics policy lead at Greenpeace USA, said the new roadmap offers an opportunity for countries to “defend and protect the most critical provisions on the table”.
He said that the document expected after the Nairobi meeting “must include and revisit proposals backed by a large number of countries, especially on plastic production, that have previously been disregarded”.
“These measures are essential to addressing the crisis at its source and must be reinstated as a key part of the negotiations,” he added.
The post Roadmap launched to restart deadlocked UN plastics treaty talks appeared first on Climate Home News.
Roadmap launched to restart deadlocked UN plastics treaty talks
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