On June 13, REC Silicon and Ferroglobe signed a raw material supply agreement. The two parties will cooperate in the development and production of polysilicon to meet the production needs of the solar energy industry chain. The company also pointed out that Hanwha Group's capital increase in REC Silicon since the beginning of this year has provided the company with sufficient liquidity, which is the main thrust to promote this cooperation.

It is reported that REC Silicon is a manufacturer of advanced silicon materials. Before 2019, its factory in Moses Lake, Washington, has been producing polysilicon. After 2019, due to liquidity problems and the impact of Sino-US trade, the factory has been closed. This year, Hanwha Qcells' capital increase in REC has provided the company with sufficient liquidity funds, which will support the company's restart of polysilicon production, which indirectly contributed to this cooperation with Ferroglobe. According to the reporter's understanding, after acquiring a 16.67% stake in REC Silicon for US$160 million in January this year, Hanwha Group acquired an additional 4.67% stake in REC from Aker Horizons for US$44 million in March, becoming the largest shareholder of REC in one fell swoop. .

The partner Ferroglobe this time is a producer of metal silicon and alloy raw materials, which provides key materials for many industrial and consumer products, and will provide REC with stable raw materials for polysilicon production.

Regarding the restart of polysilicon production, REC said that the polysilicon produced in Moses Lake will be used by Hanwha Qcells' PV module production department, which currently operates a 1.7GW module factory in Georgia.

In addition, REC Silicon CEO James May revealed last month that the company's polysilicon production using fluidized bed reactor technology is expected to start production in the fourth quarter of 2023 and reach full production in 2024.

REC also mentioned that if the Solar Energy Manufacturing of America (SEMA) Act is passed, the US solar supply chain will grow rapidly. Originally unveiled last year by Georgia Sen. Jon Ossoff and placed on the Build Back Better policy agenda, SEMA proposes a range of solar tax incentives, including incentives for polysilicon, ingots, silicon Sheet, cell and module project construction and production.

"We believe the passage of the SEMA Act will greatly advance the entire solar industry and create tens of thousands of jobs, accelerating America's transition to clean energy," REC said.