The closure of REC Silicon’s Moses Lake facility in Washington marks another setback for America’s solar manufacturing ambitions, as Hanwha Solutions Corp. prepares to withdraw from US polysilicon production. The plant, the last remaining polysilicon facility in the US, failed to meet quality standards required by Hanwha Q Cells.
The shutdown threatens to unravel a 4 trillion won ($2.7 billion) supply agreement signed in 2023 and disrupts Hanwha’s strategy to build a complete solar manufacturing chain in the United States. Sources say the Korean company is considering selling its 33% stake in REC Silicon.
Technical challenges plagued the Washington facility after its restart in late 2023. The exodus of experienced staff during a previous shutdown left the plant struggling to produce solar-grade polysilicon that met Hanwha’s specifications. Aging equipment added to the operational difficulties, making necessary upgrades financially unfeasible.
Hanwha Q Cells, which operates two solar manufacturing hubs in Georgia with 8.4 GW capacity, plans to pivot to Malaysian supplier OCIM for its polysilicon needs. While OCIM’s polysilicon costs $22 per kilogram, triple the price of Chinese alternatives, potential US anti-dumping duties of up to 250% on Chinese materials could make Malaysian sourcing more economical.
