Norway-based silicon materials maker REC Silicon ASA (OSE:REC) and silicon metal producer Ferroglobe PLC (NASDAQ:GSM) will work to create a fully traceable US-based solar supply chain, the two said today.
The companies have signed a memorandum of understanding (MoU), under which Ferroglobe commits to supply high purity silicon metal from its US sites to REC Silicon. The plan will support the development of an end-to-end US solar supply chain from silicon metal and polysilicon to fully assembled solar modules. It follows the recent investment by South Korea’s Hanwha Group, the parent of Qcells, into REC Silicon. This investment has allowed REC Silicon to move towards restarting its polysilicon plant in Moses Lake, Washington, next year.
Under the MoU, REC Silicon and Ferroglobe will work together to increase production and employment at their US facilities.
According to the announcement, expansion of US production of polysilicon and metallurgical grade silicon will be spurred by the potential passage of senator Jon Ossoff’s Solar Energy Manufacturing for America Act as part of a clean energy incentive package.
“We have had a longstanding relationship with REC, and this MoU aligns both company’s respective expertise and competencies towards a common goal which is critical to the United States,” noted Ferroglobe’s chief executive Marco Levi.