REC Closes Norwegian Polysilicon Plant and Turns to the United States to Open a Plant

Recently, Singapore-based photovoltaic module manufacturer REC Group shut down polysilicon production in Kristiansand and Porsgrunn, Norway.

REC CEO Jan Enno Bicker said in a press release issued by Norwegian media, "We have reached the point where we cannot produce high-purity silicon in Norway and we compete with companies with electricity prices of NOK 0.40 (USD 0.037) per kilowatt hour. Currently , our electricity price on the spot market is more than ten times that price.”

In fact, REC restarted its polysilicon plant in Norway in March this year, but then shut it down again in August due to high local electricity prices.

It is understood that REC's production activities in Norway have lost a total of 335 million Norwegian kroner ($31.2 million), and the suspension of production is expected to affect about 250 workers. However, the losses in the company's polysilicon business did not start recently. In the fourth quarter of 2022, REC achieved revenue of US$31.5 million and a loss of US$23.5 million. The company stated that it was caused by the decrease in sales of polysilicon and silane gas in the fourth quarter.

The situation did not improve in the first quarter of this year. In the first quarter of 2023, the company continued to be affected by reduced sales of silane gas and polysilicon, and its net profit loss expanded to US$34.4 million during the period. At the same time, the company's polysilicon sales also fell 36% year-on-year to 183 tons.

Although the polysilicon business is experiencing losses, the company is still planning to restart its Moses Lake plant in the United States with a 16,000-ton solar-grade granular silicon production capacity.