Hanwha Solutions buys 16.67% stake in REC Silicon

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Hanwha Solutions Corporation, a unit of South Korea-based chemical company Hanhwa Group, has agreed to buy a 16.67% stake in Norway-based polysilicon manufacturer REC Silicon ASA for $160.4 million.

The move is intended at securing low-carbon photovoltaic materials amid growing demand for renewable energy in the United States, Hanwha Solutions said in a statement. In the United States, REC Silicon owns and operates a 20,000 MT polysilicon factory in Moses Lake, Washington, and a 2,000 MT facility in Butte, Montana.

“The Transactions are expected to strengthen REC Silicon’s financial position and ensure that the Company has the necessary resources to reopen its FBR facility in Moses Lake, Washington, and enable valuable investment opportunities in Butte, Montana,” REC Silicon said in its own press release. “A US value chain for solar PV manufacturing will result in the creation of demand for solar grade polysilicon, which the Company expects will result in the restart of the manufacture of high quality, low-cost solar grade granular polysilicon in Moses Lake, Washington during 2023.”

Hanwha Solution stated it will further invest in the United States, where it already operates a 1.7 GW solar module factory, as it want to anticipate further significant policy support when the US Congress passes the Solar Energy Manufacturing Act (SEMA) before year’s end. “Most US-based polysilicon manufacturers have halted their production for solar-grade polysilicon, including REC Silicon at Moses Lake. Signing SEMA into law and leveraging smart trade and other federal policies will boost solar manufacturing in the United States,” the company said. “Capitalizing on our expertise in polysilicon production, we will reopen the Moses Lake facility and jumpstart REC Silicon production in the US.”

In its latest financial report published in mid-October, the polysilicon manufacturer said its solar sales during 2021 represented small sales volumes from remaining granular polysilicon inventories. “REC Silicon has undertaken project execution activities which will maintain the ability to restart the Moses Lake facility near the beginning of 2023,” it also stated at the time.

*The article was updated on November 18 to add that Hanhwa Solutions wants to further invest in the US market.

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