Overseas demand is on the rise! Norwegian REC restarts U.S. plant producing 16,000 tons of solar polysilicon per year
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Following Hanwha of South Korea’s recent investment, REC Silicon, a polysilicon producer based in Norway, will fully restart its plant in Moses Lake, USA, by the end of 2024. Hanwha’s $204 million investment in the company will enable REC to restart the factory at full capacity, rather than aiming for a 50% capacity utilization level as previously planned. In January this year, Hanwha acquired a 16.67% stake in REC for $160 million, and then in April it purchased an additional 4.67% stake from investment firm Aker Horizons for $44 million, raising its total stake to 21.34%. REC has two manufacturing plants in the United States: one is a plant in Moses Lake, Washington, that produces 16,000 tons of solar-grade polysilicon per year, and the other is a plant in Montana that produces 2,000 tons of electronic-grade polysilicon per year. The plant in Moses Lake ceased operations in 2019. REC plans to resume production at Mowusu Lake in the fourth quarter of 2023, raising it to 50% in the first half of 2024 and to 100% in the second half. James May, REC’s CEO, said that by the end of 2021, market forecasts for polysilicon prices in 2022 would decline due to increased capacity utilization and the commissioning of new production facilities. But recently, the price of solar polysilicon has continued to rise, increasing by 12 percentage points in the first quarter due to utilization rates that were lower than expected. “This often indicates that estimates of global polysilicon capacity may be somewhat exaggerated, as well as delays in the commissioning of announced expansions,” said Mei. The company expects prices to continue rising in the coming quarters, reflecting ongoing supply constraints. Meanwhile, the growing demand to develop solar supply chains outside of China has increased the number of inquiries received by REC for solar-grade polysilicon from Moxi Lake.
How many more years can the benefits of the polysilicon industry be sustained?
There are at least another ten years until 2030, and Sinopec, CNPC, and various power companies will need to rely on photovoltaic technology to meet their carbon reduction targets
I wonder if you’ve seen CNPC and Sinopec’s recent carbon neutrality plans; by 2030, solar panels are to be installed in every place where it’s possible to do so
Surge in Profits for Polysilicon Companies in the First Quarter of 2022 https://bbs.hcbbs.com/thread-3352079-1-1.html (Source: Huahai Chuanliu – Haichuan Chemical Forum Website)
According to Reuters, U.S. President Biden will announce on June 6 a 24-month tariff exemption for solar products manufactured in Cambodia, Malaysia, Thailand, and Vietnam. He will also use the Defense Industrial Production Act to accelerate U.S. manufacturing capabilities across the entire solar supply chain. This tariff exemption is primarily related to a previous investigation by the U.S. Department of Commerce (DOC). On March 28, DOC announced that it would take action on a petition filed by California-based solar panel manufacturer Au*n Solar, initiating anti-circumvention investigations into photovoltaic cells and panels across Cambodia, Malaysia, Thailand, and Vietnam starting from March 25. With the release of this investigation news, U.S. solar developers are facing the threat of widespread cancellations and delays in component shipments. According to a survey conducted by the Solar Energy Industries Association (SEIA) among 200 solar companies, three-quarters of them said they had delayed or canceled the delivery of solar panels. Recently, a bipartisan group of 19 U.S. governors sent a letter to President Joe Biden and Commerce Secretary Gina Raimondo, urging Biden to **conclude the review of the anti-circumvention solar tariffs as soon as possible**. It is reported that in order to get the stalled solar energy projects back on track, the White House will announce a suspension of new tariffs ； At the same time, in order to accelerate U.S. manufacturing capabilities across the entire solar supply chain and reduce reliance on imported photovoltaic products, Biden **will also invoke the Defense Industrial Production Act, with the goal of achieving 22.5 GW of domestic manufacturing capacity by 2024.
A solar-grade polysilicon plant with an annual production capacity of 16,000 tons, located in Moose Lake, Washington