Germany’s RW Silicium Suspends Silicon Metal Production Amid Soaring Energy Costs

RW Silicium

High electricity prices and weak demand force temporary shutdown at AMG subsidiary’s Pocking facility.

RW Silicium, a leading silicon metal producer and subsidiary of AMG, has suspended production at two of its four electric arc furnaces in Pocking, Germany. The company cited unsustainable electricity prices of €90–100/MWh as the key reason behind the decision. Both units had been operational since March 2024 but were idled in April due to cost pressures.

The company has initiated maintenance activities as part of a temporary shutdown, with plans to restart one furnace during the second quarter of 2025. RW Silicium’s facility has a total annual capacity of 32,000 tonnes, according to data from the US Geological Survey.

Europe’s Silicon Metal Sector Struggles with Dual Pressures

High energy costs are not the only challenge. Weak demand from the European automotive sector has pushed silicon metal prices to multi-year lows, further justifying production cuts. This dual pressure of low market prices and high input costs is threatening the viability of domestic producers.

To mitigate this, the European Commission has launched a safeguard investigation targeting imports of silicon metal and ferro-alloys from non-EU countries. This move aims to protect the regional industry from further erosion caused by cheap imports and external shocks.

Strategic Pause or Long-Term Challenge?

While RW Silicium plans a phased return to production, the situation underscores broader concerns within Europe’s energy-intensive metallurgical sectors. Unless power prices stabilize or structural reforms are enacted, more producers could follow suit.

The future of European silicon metal production may hinge on policy interventions, trade protections, and a rebound in industrial demand, particularly from automotive and photovoltaic sectors.