REC Silicon to negotiate raw material supply deal with Mississippi Silicon
Image Credits: Mississippi Silicon LLC.
REC Silicon ASA (OSE:REC) has entered into a memorandum of understanding (MOU) with Mississippi Silicon LLC as the first step in negotiating a raw material supply deal that will support the establishment of a low-carbon and fully-traceable solar supply chain in the US.
The Norwegian polysilicon producer, which intends to reopen its currently idle Moses Lake facility in Washington next year, announced the signing of this pact on Monday. It said in a statement that the recent passage of Senator Jon Ossoff’s Solar Energy Manufacturing for America Act as part of the Inflation Reduction Act (IRA), facilitates plans to develop an end-to-end US solar supply chain from raw silicon, to polysilicon, and finally fully assembled solar panels.
The main pillar in REC Silicon’s undertaking is the previously announced commitment by major shareholder Hanwha Solutions Corp (KRX:009830) of South Korea to carry out a multi-phase, multi-billion-dollar investment plan.
Mississippi Silicon is a producer of raw silicon metal that operates a plant in Burnsville, Mississippi. It is a partnership between majority owner Rima Holding USA Inc and Clean Tech I LLC.