Abound Solar will set up an 8.4 million square-metre solar module manufacturing plant in Tipton, Indiana, US.
The manufacturing plant will produce solar modules with a total capacity of 640MW per year.
The firm has secured a $400m loan guarantee from the US Department of Energy and a $110m equity investment to lease a facility, which will be home to the plant.
An investment group led by WW Reynolds Companies has held the property since the 2009 bankruptcy of the former owner, Getrag Transmission Manufacturing.
Abound Solar has signed a long-term lease agreement with WW Reynolds Companies to make necessary upgrades to the property.
Development of the site is expected to begin in 2012.