"US Solar Market Expands" Hanwha Invests in US Polysilicon Plant

Hanwha Q CELLS Georgia Factory, USA

[Asia Economy Reporter Choi Dae-yeol] Hanwha Solutions announced on the 18th that it has agreed to acquire a 16.67% stake in REC Silicon, a Norwegian publicly traded company operating two polysilicon plants in the United States, for $160.47 million (approximately 190 billion KRW). This investment aims to strengthen local business competitiveness in anticipation of growth in the U.S. solar industry.

According to Hanwha, this stake acquisition will give it an equal shareholding with the current largest shareholder, Aker Horizons. Polysilicon is a key raw material used in manufacturing solar cells. Hanwha Solutions and Aker Horizons plan to explore expanding their business in the renewable energy sector by utilizing polysilicon produced in the U.S. REC Silicon is a Norwegian investment company that invests in firms related to renewable energy businesses such as solar, wind, hydrogen, and carbon dioxide capture.

REC Silicon has a total production capacity of 20,000 tons, including 18,000 tons of polysilicon for solar use at its Moses Lake plant in Washington State and 2,000 tons of semiconductor-grade polysilicon at its Butte plant in Montana. The Moses Lake plant operates on hydropower without greenhouse gas emissions. Hanwha Solutions stated, "We acquired the stake because local customers increasingly request solar modules made with U.S.-produced polysilicon."

If the U.S. Solar Energy Manufacturing Act (SEMA) passes within this year, Hanwha is also considering additional investments across the entire solar value chain, including local module factories. Currently, most U.S. polysilicon plants for solar use have effectively halted operations due to China's anti-dumping tariffs, but Hanwha expects that the plants will be able to resume operations once the legislation is enacted. President Joe Biden recently announced plans to increase the share of solar power to over 40% of total electricity consumption by 2035. To achieve this, an additional 30 to 60 GW of solar capacity must be installed annually. Hanwha Solutions operates a module factory in Georgia with an annual production capacity of 1.7 GW.

A Hanwha Solutions official said, "If the U.S. solar industry promotion policy is fully implemented, the value of companies owning polysilicon plants in the U.S. is expected to rise," adding, "Sharing the experience and know-how accumulated in polysilicon and solar cell/module businesses will create positive synergy between the two companies."

Meanwhile, the company plans to invest 1.5 trillion KRW by 2025 in expanding production facilities and researching high-efficiency cells. Domestically, it operates factories in Jincheon and Eumseong with an annual production capacity of 4.5 GW.

This content was produced with the assistance of AI translation services.