Irex Energy Joint Stock Company, a member of SolarBK, has partnered with Japan’s Hamada Co., Ltd. to develop a solar panel recycling facility in Vietnam, in what could become one of the country’s first structured efforts to handle end-of-life solar equipment.
The cooperation agreement was signed on March 26 at Irex’s factory in Ho Chi Minh City, underscoring a growing wave of Vietnam - Japan collaboration in renewable energy technology.
Under the deal, the two companies will establish a joint venture to build and operate the recycling facility. The project combines Irex’s experience in infrastructure development and local market operations with Hamada’s advanced recycling technologies developed in Japan.
Irex signs a landmark agreement with Hamada in energy sector
The facility is expected to process around 40,000 solar modules annually, covering collection, classification and recycling. Recovered materials may include glass, aluminum frames, junction boxes, solar cells and other reusable components.
The initiative comes as Vietnam’s solar power sector, after a rapid expansion in recent years, begins to confront the long-term challenge of managing equipment at the end of its lifecycle. Industry experts say the absence of a recycling ecosystem could become a bottleneck for sustainable growth.
Nguyen Duong Tuan, General director of SolarBK, said the partnership reflects a broader shift in the industry.
“Throughout the development of the solar industry, lifecycle management and recycling of solar panels have become increasingly important global issues,” he said, adding that the project lays the groundwork for a circular economy model in Vietnam’s solar sector.
Hamada, which has more than 50 years of experience in waste recycling and over a decade in solar panel recycling in Japan, sees Vietnam as the next market facing similar pressures.
“As Japan faces a growing need for solar waste management, Vietnam will encounter a similar challenge in the future,” said Nagata, COO of Hamada. “Through this partnership, we aim to develop a robust recycling infrastructure and contribute to advancing the circular economy in Vietnam.”
From a broader policy and market perspective, the project also aligns with rising environmental, social and governance (ESG) expectations in global supply chains.
Dinh Hong Ky, Chairman of the Ho Chi Minh City Green Business Association, noted that recycling models in renewable energy not only reduce environmental impacts but also strengthen the competitiveness of Vietnamese enterprises.
“The cooperation between Irex and Hamada demonstrates how local companies can proactively adopt international technologies while creating long-term sustainable value,” he said.
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As the global solar industry enters a new phase, where energy efficiency must be matched by environmental responsibility, the Irex-Hamada project is expected to serve as an early building block for Vietnam’s solar circular economy, an area that remains largely underdeveloped but increasingly urgent.
Instead of importing scrap, a Vietnamese business is taking advantage of local waste, recycling it right in the country to produce high-quality products and then, to sell to the big market US and Europe.
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