REC Silicon, a key player in the polysilicon manufacturing business, has announced the cessation of polysilicon production at its Moses Lake, Washington facility. This decision follows the earlier closure of its Montana plant and effectively ends all US-based polysilicon operations for the company.  

The move comes after an "unsuccessful qualification test" by its primary customer, believed to be Hanwha Solutions, due to "lower-than-expected levels of crystallization and ingot yield." This setback, coupled with limited customer demand outside the US and China, prompted the company to prioritize its silicon gas business.

Polysilicon is a versatile material used in the electronics industry. It serves as a fundamental building block in semiconductor manufacturing, forming the basis for transistors, diodes, and integrated circuits. It acts as the substrate material for light-emitting diodes (LEDs) and is crucial to produce thin-film transistors (TFTs) found in displays for laptops, smartphones, and televisions. It is also utilized as both a resistor and a conductor, with the desired electrical conductivity achieved through doping.

Hanwha's Ambitions Stalled

Hanwha Solutions, which acquired a significant stake in REC Silicon in 2022, aimed to create a fully integrated US solar supply chain. REC Silicon's Moses Lake facility was a crucial link in this plan, supplying polysilicon to Hanwha's Qcells factories in Georgia for solar panel manufacturing. However, persistent quality issues hindered production, despite efforts to improve impurity levels.  

Shifting Focus to Silicon Gases

While polysilicon production halts, REC Silicon will maintain the equipment used for silicon gas production. This strategic move positions the company to capitalize on future demand for silicon anodes and other gases within the energy storage sector.  

Impact on Workforce and Future

The shutdown at Moses Lake will have immediate consequences, with a significant reduction in the workforce. The company is currently negotiating with Hanwha to terminate their contract, seeking to avoid penalties and defer pre-payment repayments. The future of REC Silicon now hinges on the success of its silicon gas business and its ability to navigate the evolving landscape of the solar energy industry.  

This news highlights the challenges faced by companies seeking to establish a robust and competitive US-based solar supply chain. While the ambition of a fully domestic solar industry remains, overcoming technical hurdles and ensuring consistent product quality are critical for its success.

REC Silicon is a prominent global player specializing in the production of high-purity silicon materials. Their core product offerings encompass polysilicon, a critical component in the manufacturing of solar cells and semiconductors, as well as silicon gases, which find applications in various electronic and industrial processes. The company caters to the needs of both the solar and electronics industries, supplying essential materials to produce advanced technologies.