A Polysilicon Factory Shut Down!

According to Polaris PV Net, REC Silicon, a polysilicon supplier headquartered in Norway, recently announced that it will cease production at its Moses Lake plant in Washington State, US. The company also shut down its polysilicon production facility in Montana, US, earlier in 2024. As a result, REC Silicon currently has no operational polysilicon business within the US.

REC Silicon stated that while polysilicon production at the Moses Lake plant will stop, the equipment involved in silicon gas production will remain in a "safe and recoverable mode, incurring minimal temporary costs, enabling the facility to restart with reasonable notice." This will allow REC Silicon to fully capitalize on future customer demand for silicon anodes or other gases in the energy storage space. REC Silicon indicated that it will now focus its business on silicon gases.

It is understood that REC Silicon was once expected to be the first step in Hanwha's announced plan to produce solar panels through a 100% US supply chain, by sending REC Silicon's polysilicon to Hanwha's Qcells plant in Georgia to be made into silicon ingots, which would then proceed through the entire production process of wafers, cells, and modules. As a result, Hanwha became REC Silicon's largest shareholder in 2022 and planned to purchase all polysilicon products produced at Moses Lake over the next 10 years. Previously, REC Silicon was forced to shut down the plant in 2018 due to competitive pressure from the Chinese market, but Hanwha's investment enabled the company to restart operations at Moses Lake.

However, for now, REC Silicon stated that although production at the Qcells ingot and wafer plant in Georgia has not yet begun, its customers can no longer wait for the delivery of products that meet their requirements. REC Silicon noted that, with no other customers in the US and limited customers outside of China, the best option is to completely halt production.

REC Silicon stated that it is currently in discussions with customers regarding the cancellation of contracts, including "waiving any penalties and deferring the repayment of initial prepayments." The closure of the Moses Lake plant will begin immediately and may take three months, with a corresponding reduction in the plant's workforce.