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A factory in Moses Lake, Washington that ceased operations in 2019 will soon recommence production of a crucial component used predominantly in solar panels, historically manufactured largely in China. REC Silicon, which owns the factory, hopes its resurgence will help achieve the goal of re-establishing a complete domestic supply chain for solar panels and reducing global dependency on China and Southeast Asian manufacturing plants.
The factory, which produces polysilicon, the key component in most solar panels, reopened in November in a joint venture with South Korean company Hanwha Qcells. They have invested billions into U.S. solar panel production and recently became the largest shareholder in REC Silicon, a Norway-based company.
Officials at both companies reopened the factory partly because of incentives from the U.S.’s Inflation Reduction Act, a climate law signed by President Biden. Factories in China and the rest of Southeast Asia deliver over 95% of solar panels using polysilicon, thus dominating the market and prompting REC Silicon to stop producing the vital component.
U.S. solar manufacturing is getting a boost from the Biden administration’s initiatives, such as the Inflation Reduction Act, triggering a manufacturing increase for solar panels and other renewable energy products. However, these efforts have suffered from a recent surge in production and a significant drop in prices for solar panels and components in China, benefiting solar farm builders but negatively impacting U.S. producers.
Trade obstacles, oversupply, and dumping have made it practically impossible to export polysilicon, according to Michael Carr, executive director of the Solar Energy Manufacturers for America Coalition. He stated the industry had fallen upon hard times.
In contrast, First Solar is a U.S. solar manufacturer that has managed to keep a healthy share in the market with their thin film panels that do not utilise polysilicon.
Hanwha Qcells plans to use 100% of the polysilicon that REC Silicon produces at Moses Lake for its fully U.S.-made solar panels. The South Korean company is also planning to pledge $2.5 billion to increase its presence in Georgia.
Qcells will transform the granular polysilicon made by REC Silicon into ingots, and then into solar wafers, to be assembled into panels.
After kickstarting operations in November, REC Silicon hired around 200 people and expanded the factory. REC Silicon also owns an additional 260 acres that can be used to further expand operations.
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