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.

Silicon Anode Technology Gears Up for Mass Production

HPQ Silicon

As the electric vehicle (EV) industry continues to expand, the demand for more efficient and sustainable battery technologies is reaching unprecedented levels. Among the leading innovations in this sector is the development of silicon anode materials, which are poised to revolutionize the market currently dominated by traditional lithium-ion batteries with graphite anodes.

HPQ Silicon Advances Toward Commercial Manufacturing

Canada-based HPQ Silicon is at the forefront of this shift, having recently inked an initial agreement to construct a facility in northern Germany for producing silicon-based battery anode materials. This collaboration with a German industrial partner aims to leverage HPQ's proprietary Purevap Quartz Reduction Reactor (QRR) technology. This technology not only manufactures high-purity silicon—the critical feedstock for anode materials—but also incorporates a carbon off-gas capture system to produce green synthetic fuels, thus enhancing the sustainability of the production process.

NanoGraf and Other U.S. Advances

In parallel, U.S.-based NanoGraf has launched Onyx, a silicon oxide anode material that claims cost parity with synthetic graphite while improving battery cell energy density by 30%. Such advancements are not only a testament to the potential of silicon anodes to enhance lithium-ion batteries but also reflect significant strides in reducing production costs and increasing stability.

NanoGraf's expansion includes a new plant in Flint, Michigan, supported by a $60 million grant from the U.S. Department of Energy. This facility is expected to dramatically increase production capacity, aiming to meet the growing demand for silicon anode materials necessary to power up to 1.5 million EVs annually.

Growing Silicon Anode Landscape

The landscape for silicon anode production is also becoming more geographically diverse. Companies like Sila Nanotechnologies and Group14 Technologies are investing heavily in facilities in Moses Lake, Washington, to ensure a steady supply of essential materials like silane gas and silicon-carbon composites. These developments are crucial as they contribute to the overall resilience and sustainability of the supply chain in the battery manufacturing sector.

As these technologies move from pilot scales to full commercial production, the industry faces several challenges, including scaling up production and managing supply chain dynamics. However, the ongoing investments and collaborations signal a robust commitment to overcoming these hurdles, promising a significant shift in the battery technology landscape by 2030.

Guibao silicon-carbon anode capacity expands with Sichuan second phase

Chengdu Guibao Science

Guibao silicon-carbon anode capacity expands as the firm builds a second phase in Sichuan. The Meishan plant adds 3,000 t per year by December 2025. The first 1,000 t per year phase started in April 2023. Guibao silicon-carbon anode capacity could reach 11,000 t per year with phase three. However, the 7,000 t per year third phase depends on market conditions.

Timeline, scale, and technology

Site construction on phase two began in September 2024. Commissioning is targeted by end-December 2025, pending qualification. Guibao remains Asia’s largest high-end silicone sealant producer. It operates 370,000 t per year of sealant capacity. Therefore, cashflow supports capital spending and start-up risk.

Silicon-carbon anodes promise far higher specific capacity than graphite. Theoretical capacity reaches about 4,200 mAh per gram. This is roughly ten times typical graphite anode capacity. However, swelling and cycle life require careful design and binders. As a result, customer qualification remains the pacing item.

Competitive landscape and demand outlook

Industry demand for silicon anodes could reach 100,000 tonnes by 2030. Large cylindrical cells and high-nickel prismatic formats drive growth. Peer capacity is also rising across China. Beijing Lirr backed a 10,000 t per year Hubei project for 2025. Putailai started trial production in Anhui at 12,100 t per year. That includes 10,000 t silicon-carbon and 2,100 t silicon oxide lines.

Guibao silicon-carbon anode capacity positions the firm for EV and storage demand. Meanwhile, phase three offers optionality if orders accelerate. Therefore, execution must balance cost, yield, and OEM timelines.

The Metalnomist Commentary

Guibao’s staged build limits risk while capturing early silicon-anode adoption. Watch qualification wins with leading cell makers and swelling mitigation progress. Pricing and graphite substitution rates will determine margin durability.

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.

Dongdao Anode Production Expansion Adds More Capacity to China’s Battery Materials Chain

Dongdao Anode Production

Dongdao anode production expansion in Guangdong province shows that China continues to build scale across graphite and next-generation battery materials. Guangdong Dongdao New Material has started construction of two anode processing lines and one silicon-carbon anode line in Zhanjiang.

The two new processing lines will each have 10,000 t/yr of capacity. One line will produce synthetic graphite anode materials, while the other will produce natural graphite anode materials. The silicon-carbon anode line will have 500 t/yr of capacity, giving Dongdao a foothold in higher-performance battery material development.

Dongdao anode production growth matters because anode materials remain a core part of the lithium-ion battery value chain. China already dominates graphite processing, and the company’s latest investment reinforces the country’s ability to expand both conventional and advanced anode supply.

Graphite Anode Capacity Continues to Scale in China

Dongdao already operates 100,000 t/yr of natural graphite anode capacity and 100,000 t/yr of synthetic anode capacity. The new Zhanjiang lines will add more processing flexibility across both major graphite anode routes.

The company is also building much larger synthetic anode projects elsewhere in China. These include 300,000 t/yr of capacity in Leizhou, Guangdong, and 150,000 t/yr in Yilong, Guizhou. This shows that synthetic graphite remains a major investment focus as battery producers seek consistent performance, controlled quality, and scalable supply.

Dongdao’s subsidiary, Zhanjiang Juxin New Energy, also plans to build a 20,000 t/yr spherical graphite facility in Zhanjiang. A commissioning date has not yet been set, but the project would add another processing step that supports natural graphite use in battery anodes.

Silicon-Carbon Line Signals Next-Generation Battery Focus

The planned 500 t/yr silicon-carbon anode line is smaller than the graphite lines, but it carries strategic importance. Silicon-carbon anodes can improve battery energy density and performance, although commercial scaling remains more technically demanding than conventional graphite.

Dongdao’s decision to build this line alongside graphite processing capacity suggests a dual strategy. The company is expanding mainstream anode capacity while preparing for future demand from higher-performance battery chemistries.

All three Zhanjiang lines are scheduled to start operations in December 2027. By then, battery supply chains may be more focused on cost reduction, fast charging, energy density, and material efficiency. Producers with both graphite scale and silicon-carbon development capacity could be better positioned for that transition.

The Metalnomist Commentary

Dongdao’s expansion shows that China is not slowing its grip on the anode materials chain. The strategic issue for global battery supply chains is no longer only graphite availability, but who controls processing scale, qualification, and next-generation material development.

Neo Battery Materials to Establish Canada’s First Silicon Anode Plant in Ontario

Neo Battery Materials

Neo Battery Materials Expands Silicon Anode Production in Windsor

Ontario-based Neo Battery Materials is set to construct Canada’s first silicon anode manufacturing facility in Windsor, Ontario. The company has secured an eight-acre land lease from the City of Windsor for 49 years, marking a major step in North America’s battery material supply chain.

Investment and Production Capacity

Neo’s planned facility will have an annual production capacity of 5,000 tons of silicon anodes, a critical component for next-generation lithium-ion batteries. The company will invest C$69 million ($48 million) in the initial construction phase and plans a C$120 million investment over the next eight years for future expansions and value-added projects.

This plant will strengthen Canada’s position in battery material manufacturing, supporting the growing electric vehicle (EV) and energy storage industries.

Kuntian Anode Plant Phase Two Targets December Start Amid Yunnan Capacity Boom

Kuntian

Kuntian anode plant phase two strengthens silicon-carbon supply

Kuntian anode plant phase two will start production by late December. The project adds 40,000 t/yr of silicon-carbon anodes. Kuntian anode plant phase two follows a first phase launched in January 2023. The first phase also holds 40,000 t/yr of capacity. Kuntian anode plant phase two slipped from 2023 because funding fell short. However, the company has revived timelines and execution.

Yunnan’s hydropower hub draws major anode producers

Yunnan offers cheap hydropower and stable power access. Therefore, producers cluster in Dali, Kunming, Qujing, and Yuxi. BTR started a 50,000 t/yr line in June 2025. Shanshan began 200,000 t/yr in January 2024. Zhongke launched 50,000 t/yr in June 2024. Its second 50,000 t/yr line starts this December. Yunnan’s total anode capacity has reached 510,000 t/yr.

Strong NEV demand supports rapid anode expansion. China produced 8.23mn NEVs in January–July, up 39% year on year. CAAM expects domestic sales near 16mn in 2025. Meanwhile, Kuntian produced 30,800t of anodes in 2024. That share equaled roughly 2% of national output. The firm also plans a third phase of 50,000 t/yr. However, it has not disclosed construction dates.

The Metalnomist Commentary

Yunnan’s hydropower arbitrage underpins cost and carbon advantages. Kuntian’s timed ramp aligns with peak NEV seasonality and new model launches. Watch third-phase timing and silicon-carbon adoption rates across premium cells.

Global Battery Expansion Set to Propel Anode Material Demand

Battery Anode Materials

NEV Growth and Energy Storage Boom Drive Anode Market Outlook

Rapid growth in the global battery industry is poised to boost long-term demand for anode materials and feedstocks, according to panelists at the 2024 Battery and Anode Summit in Changzhou, Jiangsu province. This demand surge reflects ongoing expansion in new energy vehicles (NEVs), energy storage systems, and consumer electronics.

Battery and Anode Output Set for Major Expansion

Global battery output is expected to reach 1,852GWh in 2025, while anode material production may hit 2.17 million tonnes. By 2028, this figure could exceed 4 million tonnes, according to ICC Sino. China produced 2.12 million tonnes of anode materials in 2024, with domestic demand reaching 1.83 million tonnes. Demand is forecast to rise steadily, reaching 3.4 million tonnes by 2028.

China’s NEV sector continues to lead global momentum, driven by sustained policy support. NEV sales in China rose 36% to 12.87 million units in 2024. Sales are projected to grow to 16 million units in 2025, supported by extended government incentives.

Renewable Energy and Silicon Anodes Add Tailwinds

Energy storage demand is also rising, with major wind and solar infrastructure developments underway in China’s Xinjiang, Gansu, Ningxia, and Inner Mongolia. Dalat county's solar generation saved 680,000 tonnes of coal in 2024 and curbed carbon emissions by 1.65 million tonnes.

Silicon-based anode materials, with energy densities up to 4,000 mAh/g, are seeing significant traction. Shipments are projected to surge from 5,300 tonnes in 2024 to nearly 81,900 tonnes by 2030, according to producer C-One.