Nextracker said it is bolstering its domestic production capacity amid uncertain and volatile global supply chain conditions.

The solar tracker manufacturer said it would be the sole customer of a steel production line at a new Steel Dynamics, Inc. facility in Corpus Christi, Texas. The line will be operated by JM Steel.

Nextracker's steel production line at the Steel Dynamics, Inc. facility in Corpus Christi, Texas. (Courtesy: Nextracker)

Nextracker CEO Dan Shugar said customers are demanding protection from steel and logistics cost volatility that has persisted throughout the coronavirus pandemic. Procuring steel in the U.S. will improve customer delivery times and result in cleaner steel production, he said.

Steel produced for Nextracker at the SDI facility will be made with Electric Arc Furnace technology that uses recycled or scrap steel as a raw material.

The steel production line provides the ability to service major markets by truck, while providing access to three Class 1 railroads (UP, BNSF, & KCS) and a deep-water port on the inland waterway system. Nextracker said it aims to support proposed solar projects in the southern U.S. with the new production line.

The Biden administration on April 18 issued a memo directing federal agencies to only procure U.S.-made iron, steel, manufactured products, and construction materials with funds allocated by the Bipartisan Infrastructure Law.