Wacker to Increase Semiconductor-Grade Polysilicon Production

Wacker Chemie

Wacker Chemie plans to boost its high-purity semiconductor-grade polysilicon output amidst low solar-grade demand. This strategic shift addresses market challenges.

Polysilicon Sales Decline Amid Market Volatility

Polysilicon sales dropped 41pc in 2024, reaching €950mn, down from €1.6bn in 2023. Overall sales fell 11pc to €5.72bn. The polysilicon division's EBITDA decreased 39pc to €195mn due to lower prices and volumes. High energy costs in Germany and reduced plant utilization also contributed. The share of semiconductor-grade polysilicon increased in 2024. Wacker produces high-purity polysilicon in Burghausen, Germany, and Charleston, US. "Our business was hit by the slump in demand for solar-grade polysilicon and by the sustained excess capacity in China," stated CEO Christian Hartel. US anti-dumping tariff uncertainty also affected markets.

Semiconductor-Grade Business and Future Outlook

Furthermore, Wacker's semiconductor-grade polysilicon business performed well. "This confirms that we are on the right track strategically in this area," Hartel said. Chip content is rising in automotive, electronics, and renewables. Wacker Chemie anticipates long-term benefits from digitalization, renewable energy, electric vehicles, and energy conservation.

Silicone Sales Outperform with Capacity Expansion

Wacker's silicone division reported a 2pc sales increase to €2.81bn. EBITDA rose 46pc to €345mn, driven by specialty products and higher plant utilization. Wacker's Holla, Norway plant supplies metallurgical-grade silicon metal. New specialty silicone facilities in Tsukuba, Japan, and Jincheon, South Korea, serve automotive and construction. A new silicones production site in Karlovy Vary, Czech Republic, will start by late 2025, producing silicones for electric vehicles, healthcare, and grid expansion.

REC Silicon Shifts Focus from Polysilicon to Silicon Gases Amid Production Challenges

REC Silicon

REC Silicon, a Norway-based manufacturer, is halting its efforts to produce solar-grade polysilicon at its Moses Lake, Washington facility due to persistent quality issues, pivoting to focus on the production of silane gas, a strategic shift reflecting changes in market demands and internal capabilities.

Production Shift Due to Quality Challenges

Initially, REC Silicon aimed to resume polysilicon production supported by a significant investment from South Korean solar panel producer Hanwha Qcell in 2022, which included a 10-year offtake agreement. However, despite several attempts to enhance the quality of the polysilicon, REC faced continuous challenges in removing key impurities. The product ultimately failed a qualification test in December, leading to decision of shutting down the polysilicon production line. The first deliveries were consistently delayed throughout 2024, failing to meet the high purity standards required for solar cell production.

Strategic Refocus on Silicon Gas Production

With the closure of the polysilicon segment, REC Silicon is now redirecting its focus towards the production of silicon gases, particularly silane, which is used in the manufacture of silicon anodes for batteries. This move is expected to better align with the evolving market dynamics, especially as the demand for battery materials increases. REC Silicon's shift is timely, considering the reduced potential customer base in the U.S. for solar-grade polysilicon, exacerbated by the doubling of U.S. tariffs on polysilicon imports from China.

The company anticipates the shutdown process will take approximately three months, during which it will maintain the necessary equipment for silicon gas production. This strategy not only saves costs but also allows for operational flexibility, enabling the company to potentially restart or scale operations based on future market needs.

In September, REC signed a significant contract to supply silane to Sila Nanotechnologies from the first quarter of 2025 through to 2031. Sila Nanotechnologies also holds contracts with major firms like Mercedes-Benz and Panasonic, indicating a strong upcoming demand for REC's silicon gas products.

Wacker Targets €1 Billion Polysilicon Sales in 2025 Amid Semiconductor Boom

Wacker

Semiconductor Demand Drives Recovery as Solar Oversupply Weighs on Market

German chemical giant Wacker Chemie aims to regain €1–1.3 billion in polysilicon sales in 2025 after a sharp decline in 2024. The company’s 2024 polysilicon revenue fell 41% year-on-year to €949 million, down from €1.6 billion in 2023. However, Wacker expects growing semiconductor demand to lift sales volumes, even as challenges persist in the solar-grade market.

Semiconductor Growth Fuels Polysilicon Expansion

Wacker is ramping up production of semiconductor-grade polysilicon at its Burghausen facility in Germany, with a new plant slated to launch in 2025. This expansion aligns with rising chip demand from the automotive and data center industries. The company anticipates increased volumes of higher-purity polysilicon, which commands better margins.

Meanwhile, the solar-grade polysilicon market remains oversupplied. Chinese producers have expanded output capacity beyond current solar panel installation needs, putting downward pressure on prices and margins.

Silicone Business to Grow by 10% in 2025

Wacker also forecasts 10% revenue growth in its silicones division in 2025. The company refines silicon metal in-house to produce silicones, which are used in diverse industrial applications. In 2024, silicone sales rose 2% to €2.81 billion, driven by increased sales of specialty products and higher plant utilization rates.

To meet future demand, Wacker has expanded production in Zhangjiagang, China, and is building a new specialty silicone facility in Karlovy Vary, Czech Republic. The new site is expected to begin operations by the end of 2025, potentially boosting sales in 2026.

Daqo to Cut Polysilicon Output in 2025 Amid Market Oversupply

Daqo

Production Declines as Inventory Remains High and Utilization Drops

Daqo New Energy, a leading Chinese polysilicon producer, will significantly reduce its 2025 output due to prolonged market oversupply.

The company expects to produce 110,000–140,000 tons, down from 205,068 tons in 2024 and 197,831 tons in 2023.

In Q1 2025 alone, Daqo projects production of just 25,000–28,000 tons, sharply lower than 62,278 tons in Q1 2024.

This move comes as China's polysilicon output slows, with national production dropping below 100,000 tons per month.

Domestic inventory levels remain high at approximately 250,000 tons, even as wafer demand reaches around 45GW.

Daqo sold more than it produced in Q4 2024, delivering 42,191 tons against output of 34,236 tons to reduce inventory.

Market May See Short-Term Price Uptick in Q2

Despite the supply glut, Daqo forecasts a brief price rebound in the second quarter of 2025.

Tightened production, seasonal hydroelectric power costs, and upcoming regulations may drive prices higher.

Hydroelectricity costs are expected to stay high through May, limiting output to 90,000–100,000 t/month.

New policy measures from China’s National Development and Reform Commission and National Energy Administration may prompt short-term buying before mid-year.

However, the second half of 2025 may bring renewed price pressure as front-loaded demand subsides.

Utilization May Stay Low Despite Installed Capacity

Although China has about 2 million tons/year of installed polysilicon capacity, actual demand may hit only 1.4–1.6 million tons.

Thus, industry utilization could remain at 40–50% over the medium to long term, Daqo warned.

Polysilicon prices fell from $11.48/kg in 2023 to an average of $5.66/kg in 2024.

Daqo's Q4 selling price was $4.62/kg, down from $7.97/kg a year earlier.

Looking ahead, prices may stabilize at 37–40 yuan/kg ($5.08–5.49) for p-type polysilicon and 40–45 yuan/kg for n-type polysilicon.

Daqo to Slash Q3 Polysilicon Production Amid Market Price Drop

Chinese polysilicon producer Daqo New Energy plans to reduce its production in the third quarter of 2024 due to a continuing decline in polysilicon prices. This strategic decision aims to curb an oversupply in the market as the company adjusts its production targets and carries out necessary maintenance.

Lower Production Forecast and Falling Prices

Daqo projects a third-quarter production range of 43,000 to 46,000 tons, a significant reduction from the 64,961 tons produced in the second quarter and the 57,664 tons produced in the same period in 2023. The company also revised its full-year production estimate down to 210,000–220,000 tons, from an earlier forecast of 280,000–300,000 tons.

The drastic fall in polysilicon prices—below 40 yuan per kilogram (kg) by the end of May, from over 60 yuan/kg in early April—was a major factor in the company's decision. Daqo reported that industry-wide inventories increased, contributing to excess supply. By the end of June, total industry inventories had grown to over a month’s worth of production, up from 18–20 days in early April.

Industry-Wide Impact and Response

The industry as a whole saw a reduction in production, with China's polysilicon output dropping by 16% to 162,000 tons in June from 192,000 tons in April. Despite these cuts, supply still exceeded demand, with solar silicon wafer customers reducing their production rates to around 50 gigawatts (GW) in June.

Daqo's CEO, Xiang Xu, emphasized that while production cuts in July helped mitigate oversupply, a rebound in downstream demand will be critical to driving down inventory levels and stabilizing prices. China's solar panel installations reached 102.48 GW in the first half of 2024, reflecting a 30.7% year-over-year growth, offering some hope for recovery.

Future Consolidation and Production Improvements

Daqo expects industry consolidation as higher-cost producers struggle to remain competitive. "Many solar firms are facing significant cash flow challenges, delaying loan repayments and deliveries," Xu said. The China Photovoltaic Industry Association (CPIA) has called for coordinated efforts between governments, financial institutions, and companies to accelerate industry consolidation.

On the production front, Daqo has begun initial operations at its new 100,000-ton Phase 5B polysilicon plant in Inner Mongolia, which accounted for 12% of the company’s total output in the second quarter. Daqo’s combined production from its two facilities reached 64,961 tons, surpassing expectations.

Furthermore, the company has made strides in producing higher-quality N-type polysilicon, with 73% of its output in the second quarter meeting this standard. The Phase 5B facility achieved 70% N-type production and is on track to reach 100% by the end of 2025. The company also reduced production costs to $6.19/kg in the second quarter, a 3% decrease from the previous quarter.

REC Silicon Adjusts Polysilicon Inventory Goals Amid Market Challenges

REC Silicon

Norway-based REC Silicon has revised its goal for clearing its inventory of semiconductor-grade polysilicon. Originally aiming to clear it by the end of 2024, the company now expects to meet this target by mid-2025 due to low demand in the market. As part of its shift to focus on silicon gas production, REC has been adjusting its production strategies, including halting polysilicon production at certain facilities.

Shifting Focus to Silicon Gas Production

REC Silicon, which produced semiconductor-grade polysilicon in Butte, Montana, and solar-grade polysilicon in Moses Lake, Washington, faced challenges that led to the closure of its Butte plant in mid-2024. High electricity costs and weak semiconductor demand were the primary drivers behind this decision. Additionally, REC ceased production at its Moses Lake facility due to the difficulty of achieving the high purity required for polysilicon used in solar cells. As a result, the company is transitioning to focus exclusively on silicon gases, which are essential for semiconductor and solar panel manufacturing.

The long-term strategy for REC involves increasing its supply of silicon gases to semiconductor manufacturers, with a notable projection for US semiconductor production to double between 2022 and 2032. The company is also expanding its role in the solar industry, as domestic solar cell manufacturing capacity is expected to increase by 1,300% over the coming years.

New Opportunities in Silicon Battery Anodes

In a major strategic shift, REC Silicon plans to start supplying silicon gases to Sila Technologies, a company that produces silicon battery anodes, in the second half of 2025. This partnership will be a significant part of REC's new focus on silicon gases, as the company is currently in discussions with six other silicon battery anode manufacturers. As electric vehicle production continues to grow, carmakers are seeking alternatives to traditional lithium-ion batteries with graphite anodes.

The Butte plant is equipped to produce 7,400 tons per year of silane and other silicon gases, while the Moses Lake facility could reach a production capacity of 24,000 tons per year. The company is keeping the Moses Lake facility operational to ramp up production when market conditions improve.

Daqo polysilicon guidance 2025 cut as oversupply persists

Daqo

Daqo polysilicon guidance 2025 was lowered as oversupply pressures the solar supply chain. The company trimmed output to 110,000–130,000t. Daqo polysilicon guidance 2025 now sits well below 2024’s 205,068t. Management again cited weak demand and high inventories.

Prices stabilize on policy moves, but fundamentals remain soft

Polysilicon prices improved from June lows after policy interventions. However, the market still faces a stock overhang and slow demand. Daqo ran at 34pc utilization in the second quarter. Production was 26,012t, in line with guidance. Yet third-quarter output will fall to 27,000–30,000t. Futures on the Guangzhou exchange briefly spiked to Yn55/kg in July. Even so, spot had fallen to Yn32–35/kg in late June. Daqo sees average industry costs at Yn40–50/kg. Therefore, relief depends on sustained price discipline.

Capacity glut delays a full recovery in utilization

Front-loaded Chinese installs distorted near-term demand. May set a record, but June installations plunged after tariff phase-outs. Daqo polysilicon guidance 2025 reflects a multi-year capacity imbalance. Installed or building capacity totals ~3.5mn t/yr. Annual demand averages near 1.2mn t/yr. As a result, industry utilization may stay subdued for years. Daqo sold 18,126t in the second quarter as it withheld volumes. The firm expects to operate at roughly 30–35pc utilization. Management hopes policy enforcement curbs below-cost selling. That could tighten balances into 2026.

The Metalnomist Commentary

This guidance cut underscores a classic downcycle: capacity outruns demand while policy tries to set a floor. Watch run-rates, inventory draws, and realized prices versus the Yn40–50/kg cost band. A durable upturn needs sustained installation growth, not episodic policy spikes.

China’s Polysilicon Output Declines as Producers Seek Market Balance

Daqo New Energy

China's polysilicon production experienced significant cuts in recent months, as leading producers adjusted output to counter oversupply and stabilize the market. According to Daqo New Energy, a leading polysilicon manufacturer, output fell 15% month-on-month in July and 6% in August, marking the lowest production levels of the year. Total production dropped below 130,000 tons in August, easing market pressure and temporarily stabilizing prices.

Market Pressures Prompt Production Adjustments

The oversupply had driven polysilicon prices to a low of 35-40 yuan/kg, below cash costs for Tier 1 producers. However, by September, prices rebounded slightly to 38-43 yuan/kg as downstream buyers took advantage of the lower prices. The sector remains under strain, with four consecutive months of cash losses pushing producers to revise strategies.

In response, Daqo implemented a series of measures:

• Facility Maintenance and Utilization Adjustments: Daqo reduced capacity utilization to 50% in Q3 and produced 43,592 tons, down from 64,961 tons in Q2.
• Production Guidance Downgrade: Full-year guidance was revised to 200,000-210,000 tons, down from an earlier forecast of 280,000-300,000 tons.

CEO Xu Xiang highlighted the ongoing need for further production cuts and stronger downstream demand to sustain price recovery.

Solar Demand and Government Stimulus Provide Hope

While the polysilicon market struggles, the broader solar photovoltaic (PV) sector shows robust demand. New solar PV installations in China reached 160.88 GW in the first nine months of the year, a 25% increase compared to 2023. The fourth quarter traditionally sees the highest number of installations, bolstered by government stimulus packages encouraging state-owned enterprises to invest in renewable energy projects.

The China Photovoltaic Industry Association (CPIA) has set a reference price of 0.68 yuan/W for PV modules, aiming to stabilize bidding processes and provide pricing clarity.

Outlook: Consolidation and Recovery

Despite signs of stabilization, Xu noted that the market may have reached a cyclical bottom but has not yet shown a clear turning point. Poor profitability and cash burn are likely to drive higher-cost producers out of the market, paving the way for long-term capacity optimization and recovery.

Hoshine Silicon Metal Output Surges with Export Growth and Industrial Demand

Hoshine Silicon Metal

Record Production Reflects Strong Global and Domestic Market Support

Hoshine silicon metal output surged to 1.87 million tonnes in 2024, a 38% increase from the previous year. The Chinese producer also boosted sales by 21% to 1.23 million tonnes amid strong demand from the polysilicon and aluminium alloy sectors. Exports grew 29% to 725,000 tonnes, driven by renewed interest from global buyers, while domestic use climbed 22%, including a 25% rise in the polysilicon segment.

Silicon Market Strengthens as China’s PV Sector Expands

The broader Chinese silicon metal market also expanded, with national production reaching 4.72 million tonnes—up 28% year-on-year, according to CNIA data. Contributing to this growth was a 28% increase in installed photovoltaic (PV) capacity in the first half of 2024, reaching 277.57GW. This surge supported greater silicon demand, particularly in renewable energy and industrial alloy applications.

2025 Outlook: Efficiency Over Expansion

Despite 2024 growth, Hoshine warns of lower polysilicon run rates in 2025 due to surplus capacity and weak wafer demand. As a result, silicon metal demand may taper off. However, Hoshine plans to phase out outdated equipment and invest in energy efficiency upgrades. In 2024, its silicon metal production operated at 153% capacity utilization due to technology enhancements and recovery improvements. The firm also holds 1.73 million t/yr of organosilicon capacity.

The Metalnomist Commentary

Hoshine’s output expansion highlights China’s silicon dominance in both energy and industrial applications. Yet, rising inventories and softer wafer demand in 2025 may shift the focus from volume to operational efficiency. Strategic upgrades and export growth remain crucial for sustaining competitiveness.

T1–Corning US solar production partnership targets stable domestic supply

US solar

T1–Corning US solar production will anchor cells and modules in America. The partners plan a Michigan–Austin–Dallas supply chain. T1–Corning US solar production uses Corning’s hyper-pure polysilicon and wafers. T1’s 5GW Austin cell facility starts by late 2026. T1–Corning US solar production then feeds T1’s Dallas module line. The strategy pursues predictable US solar components amid new tariffs.

US manufacturing plan links Michigan wafers to Austin cells

Corning will supply wafers and polysilicon from Michigan. T1 will convert these inputs at its $850mn Austin plant. The facility targets 5GW of cell capacity. Production should begin by end-2026. Cells will ship to Dallas for module assembly. Therefore, logistics remain entirely inside the US. This reduces import risk and lead times.

Policy tailwinds and risk factors for domestic solar

US trade actions tightened import conditions this year. Commerce imposed AD/CVD on key Southeast Asian suppliers. A Section 232 probe now reviews polysilicon import security. Therefore, domestic output gains relative certainty. However, ramp risk still includes yields and qualifications. Bankable offtakes and tax credits will shape execution.

The Metalnomist Commentary

This partnership aligns manufacturing with policy and grid needs. Yet scale economics hinge on high yields and steady wafer supply. Watch contract visibility and Austin ramp curves through 2027.

Pax Silica silicon supply chain initiative reshapes US semiconductor partnerships

Pax Silica

The Pax Silica silicon supply chain initiative signals a new US push to secure silicon inputs. The US will partner with Japan, South Korea, Singapore, and other allies. Therefore, the Pax Silica silicon supply chain initiative links minerals, energy, and manufacturing into one strategy.

The initiative targets upstream security across the silicon value chain. It aims to secure critical mineral and energy inputs for silicon processing. Meanwhile, it also promotes downstream joint ventures for chips and AI infrastructure.

Pax Silica targets refining, processing, and infrastructure buildout

The plan prioritizes new mineral refining and processing capacity. It also supports expansion of data centers and fiber optic cables. As a result, the Pax Silica silicon supply chain initiative connects material supply to digital buildout.

Polysilicon sits at the center of this effort. Polysilicon reaches ultra-high purity and feeds silicon wafer production. Therefore, the US polysilicon supply chain matters for AI chips and advanced semiconductors.

US demand for AI chips exposes supply concentration risks

US wafer capacity gaps now collide with surging AI demand. Industry data says a small group of suppliers dominates global wafer output. However, current US-based production cannot meet rising domestic AI needs.

The partnership list also signals strategic alignment beyond manufacturing. It pairs trusted jurisdictions with investment in processing and infrastructure. Meanwhile, it raises the bar for traceability, resilience, and speed across the silicon supply chain.

The Metalnomist Commentary

This initiative will reward projects that lock in low-cost power and reliable refining capacity. However, permitting timelines and technology transfer terms will decide real supply growth. Therefore, buyers will track near-term contracts more than long-term diplomacy.

Hemlock Semiconductor to Receive $325 Million for New Facility Under CHIPS Act

Hemlock Semiconductor

Hemlock Semiconductor (HSC), the only U.S.-based producer of hyper-pure polysilicon, has been preliminarily granted $325 million in funding under the CHIPS Act by the U.S. Department of Commerce. This funding aims to boost domestic semiconductor manufacturing and reduce reliance on international supply chains.

The grant, currently in a non-binding preliminary memorandum of terms phase, is intended to support the construction of a new manufacturing facility on HSC's existing campus in Hemlock, Michigan. The facility will focus on increasing the production of hyper-pure polysilicon, a critical material used in artificial intelligence (AI) chips, microprocessors, and memory devices.

Economic Impact

If finalized, the investment is expected to generate nearly 180 high-skill manufacturing jobs and over 1,000 construction jobs, significantly contributing to the local economy.

The Role of the CHIPS Act

The CHIPS Act, a landmark U.S. policy initiative, is designed to fund domestic research and manufacturing of semiconductors to enhance national security and technological competitiveness. HSC’s expanded capacity under this program will play a pivotal role in meeting the growing demand for semiconductor-grade materials in emerging technologies.

This strategic investment reinforces HSC's position as a critical player in the U.S. semiconductor supply chain, supporting advancements in artificial intelligence, computing, and other high-tech applications.

First Solar Tariff Revisions Lift 2025 Sales Guidance and Shift Module Mix

First Solar

First Solar tariff revisions are reshaping 2025 sales plans and regional mix. The company raised guidance after negotiated duties on Asian imports. First Solar tariff revisions also sharpen cost risks and near-term pricing dynamics.

Guidance rises as duties reshape import economics

First Solar tariff revisions include 25pc on Malaysia and 20pc on Vietnam. As a result, management lifted 2025 module sales to 16.7–19.3GW. International sales now target 7.2–9.5GW, up from 6–9.5GW. US-made volumes remain 9.5–9.8GW for 2025. The firm still warns of Section 232 uncertainty on polysilicon. It also monitors a possible 25pc levy on India.

Costs, capacity ramp, and backlog support the outlook

Tariffs could cost $70mn/yr on production and $80–130mn on imports. If customers resist price pass-throughs, First Solar could idle lines. However, capacity ramps in Alabama continue, with Louisiana qualification expected in October. Second-quarter output reached 4.2GW, including 2.4GW in the US. International plants produced 1.8GW in the quarter.

Commercial traction remains solid with a 64GW bookings backlog through 2030. Meanwhile, revenue guidance increased to $4.9–5.7bn for 2025. Second-quarter revenue rose 9pc year on year to $1.1bn. Quarterly profit slipped 2pc to $342mn amid tariff and mix effects.

Policy remains the key swing factor for pricing and margins. US baseline import tariffs sit at 10pc since 5 April. First Solar tariff revisions interact with that floor to influence landed costs. Therefore, international units could flex lower if pass-throughs stall.

The Metalnomist Commentary

Tariff-driven repricing favors domestic thin-film supply in the near term. Yet margin outcomes hinge on pass-through discipline and buyer mix. Watch the India tariff risk and Section 232 actions; either could tighten module spreads again.

Chinese PV Industry Faces Overcapacity and Profit Losses: IEA Reports

Iea(The International Energy Agency)

The International Energy Agency (IEA) has issued a concerning report highlighting the overcapacity and declining profitability in China’s photovoltaic (PV) industry, which is the dominant force in the global solar energy supply chain. The report, presented during a webinar this Thursday, sheds light on the financial struggles faced by major Chinese manufacturers such as JA Solar Technology and LONGi Green Energy Technology, which have reported significant losses in their recent financial statements.

According to Izumi Kaizuka, an analyst at the IEA, the mood at the 17th SNEC PV conference in Shanghai this June was grim. Kaizuka quoted the founder of GCL Group, a major PV manufacturer, who expressed concern that the Chinese PV industry is "entering an ice age" due to a severe imbalance in supply and demand. The report also highlighted the bankruptcy of Zhejiang Akcome, one of China’s leading PV manufacturers, earlier this year, with the IEA predicting more closures in the near future.

China's Dominance in Global PV Production

Despite the struggles at home, China continues to dominate the global PV industry. In 2023, China accounted for more than half of the 456GW of global solar power capacity added, and nine of the top 10 PV suppliers in the first half of 2024 were Chinese-owned. The country has increased its production share across all segments of the PV supply chain, including polysilicon, crystalline silicon wafers, solar cells, and PV modules, with its share reaching 92%, 98%, 92%, and 85%, respectively, in 2023.

The rapid expansion of China’s PV capacity is evident, with the country increasing its own year-on-year solar additions by 123% from 2022 to 2023, followed by Italy (113%) and Germany (109%). However, the global demand for PV capacity is pushing countries like the EU and the US to expand their own solar production capabilities, with the EU installing over 56GW in 2023 alone.

The EU's Push for Solar Manufacturing

In response to its growing reliance on Chinese imports, the European Union (EU) has set ambitious targets to scale up domestic production of PV panels. Under the Net-Zero Industry Act, the EU aims to produce at least 40% of its annual needs for strategic net-zero technologies—including solar panels—by 2030. With current production at under 5GW annually, the EU is planning to ramp up its manufacturing capacity to 30GW per year by 2030 in order to meet its renewable energy goals.

As the global PV market faces challenges like overcapacity and supply-demand imbalances, the role of China in driving production and the EU’s efforts to boost its domestic capabilities will shape the future of the solar industry.

Elkem’s Ferro-Silicon Production Set to Drop Amid Weak 4Q Sales

Elkem

Elkem reduces production after weak sales and muted demand for silicon and ferro-silicon products.

Norwegian silicon and ferro-alloy producer Elkem is set to cut back its ferro-silicon production in the first quarter of 2025. This decision follows a significant drop in silicon product sales during the fourth quarter of 2024. Elkem’s operations have been under pressure due to weaker demand and lower prices, particularly in the ferro-silicon and silicon markets.

Production Challenges and Maintenance Disruptions

The reduction in production is largely driven by scheduled maintenance at Elkem’s Norwegian facilities and power constraints at its Iceland-based Hvalfjordur plant. These issues have already led to a 30% decrease in production at the Hvalfjordur plant since January. The plant, which has a production capacity of 120,000 tonnes per year, will likely see continued production constraints in the first quarter.

Decline in Sales and Weak Market Conditions

Elkem’s silicon products division, which includes silicon metal and ferro-silicon, saw a 19% decrease in sales during the fourth quarter of 2024, reaching 98,000 tonnes. This decline was a reflection of weak market conditions, with demand for silicon and ferro-silicon remaining subdued. Furthermore, prices in China hit new lows due to oversupply and a downturn in the polysilicon market. Although prices in Europe remained more stable, they were still relatively low throughout the quarter.

Financial Performance and Strategic Adjustments

Despite the challenges in its silicon products division, Elkem saw a significant improvement in its overall earnings before interest, taxes, depreciation, and amortisation (EBITDA), which totaled 1.16 billion kroner ($102.85 million) for Q4 2024. This represents a marked increase from the previous year’s 632 million kroner, driven by operational improvements and a successful capex reduction program. However, the EBITDA for the silicon products division fell by 24%, marking a 13.3% decrease in full-year 2024 EBITDA compared to 2023.

In light of these challenges, Elkem is considering divesting its silicones division. This move would allow the company to focus on expanding its silicon products and carbon solutions divisions, aiming for more robust growth in these areas.

Conclusion

Elkem’s decision to reduce ferro-silicon production is a direct response to weak demand and operational issues in early 2025. The company’s strategic adjustments, including a potential divestment of its silicones division, aim to position it for future growth in the silicon and carbon solutions markets, which could be key to sustaining long-term profitability.

T1 Energy Plans 5GW Solar Cell Plant in Texas to Strengthen US Supply Chain

T1 Energy

Texas Facility Marks New Phase for US Solar Manufacturing

T1 Energy announced plans to build a 5GW solar cell facility in Texas, aiming to address critical gaps in the US solar supply chain. The $850mn G2_Austin plant is scheduled to start production by late 2026. This project follows T1 Energy’s acquisition of Trina Solar’s US assets in 2024 and a rebranding from Freyr Battery, which abandoned its $2.6bn battery storage project in Georgia.

The new facility will supply cells to the 5GW G1_Dallas module plant, reducing reliance on imports from Asia. Current US solar cell capacity remains just 2GW, compared to 56GW of module production. This imbalance highlights the urgency of building more domestic cell production.

US Tariffs and Technology Drive Expansion

T1 Energy’s Texas project benefits from US tariffs and tax incentives, which encourage domestic solar manufacturing. The US Commerce Department has imposed anti-dumping duties on PV cells from Southeast Asia to counter circumvention of Chinese tariffs. Meanwhile, T1 Energy will adopt high-efficiency TOPCon technology, which uses n-type polysilicon. This move reflects the global shift from older Perc technology toward higher-performing solar cells.

However, tariff uncertainty has caused the company to lower its module production forecast for 2025 to 2.6–3GW, down from 3.4GW. T1 Energy is also holding off on long-term power purchase agreements until cost visibility improves. Despite these challenges, the Austin facility represents a major step toward reshoring solar cell production and securing domestic supply chains.

The Metalnomist Commentary

T1 Energy’s 5GW solar cell project signals a turning point for US clean energy policy, linking tariffs, incentives, and new technology adoption. If executed successfully, this facility could strengthen US energy independence while setting a precedent for integrated solar manufacturing in North America. However, cost pressures and tariff volatility remain significant risks for long-term stability.