Vietnam and Japan close the loop for solar panels

A new partnership is developing a solar panel recycling project as early photovoltaic (PV) installations approach end-of-life.

IREX Energy in Vietnam and Japanese player Hamada have signed a memorandum of understanding to recycle solar panels in Vietnam. The focus is on recovering materials from decommissioned PV modules.

The collaboration targets glass, aluminium frames, silicon and other recoverable metals. The materials would re-enter manufacturing supply chains once separated and processed.

Early infrastructure for a growing market

IREX Energy, part of SolarBK Group, brings local expertise in solar development and module production. Hamada contributes established recycling technology and experience from Japan’s well-established waste management sector.

The project is positioned as early-stage infrastructure building rather than large-scale industrial processing.

Central to the partnership is constructing a recycling plant near IREX’s factory in Ho Chi Minh City. The hub is expected to process around 40 000 modules annually, reports Hamada’s coo Takehisa Nagata.

‘Japan is facing a growing need for solar waste management,’ he says. ‘With over a decade of experience in solar panel recycling, we understand that effective solutions require coordination across the entire value chain. Vietnam will face similar challenges as its solar market matures and early action is key.’

Biggest in Southeast Asia

The collaboration comes as Vietnam seeks to align renewable energy growth with long-term sustainability targets, including net-zero emissions by 2050.

Vietnam’s solar sector has expanded rapidly over the past decade and is leading the game in Southeast Asia. As a result, installed capacity now exceeds 19 GW, and early utility-scale projects are beginning to approach the 20 to 25-year end-of-life window.

Vietnam’s solar recycling market is small and is valued at around EUR 0.7 million. However, it is projected to grow to roughly EUR 2.3 million by 2033 as volumes increase.

Meanwhile, Japan’s solar panel recycling sector has reached almost EUR 30 million. The figure will likely top EUR 40 million by 2030.

Policy support and expanding solar capacity

Vietnam’s broader solar market continues to accelerate under Power Development Plan VIII. Installed capacity is expected to reach 37.6 GW by 2031, supported by strong policy backing and rising industrial demand.

Growth is increasingly driven by utility scale projects, rooftop solar and hybrid storage systems. In addition, regional authorities in Gia Lai Province have approved four new renewable energy investments worth about EUR 175 million, including three solar developments scheduled to enter operation in 2028.