The revival of a factory in Moses Lake, Wash., that shut down in 2019 is set to make a significant impact on the solar panel industry. REC Silicon, the owner of the factory, will soon resume shipping polysilicon, a critical ingredient used in most solar panels. This move could help reduce the world’s reliance on Chinese manufacturing and establish a complete domestic supply chain for solar panels.
The factory reopened in November in partnership with Hanwha Qcells, a South Korean company investing billions of dollars in U.S. solar panel production. This collaboration comes as part of President Biden’s Inflation Reduction Act, which provides incentives for domestic manufacturing. The executives at REC Silicon and Hanwha hope that their decision will encourage other companies to revive production of this essential technology.
The United States was once a leader in solar panel manufacturing, but factories in China and Southeast Asia now dominate the market. The Biden administration has been working to revive the U.S. solar manufacturing industry, but faces challenges due to increased production in China and falling prices of solar products.
To address these challenges, the American Alliance for Solar Manufacturing Trade Committee has petitioned the U.S. International Trade Commission and the Department of Commerce to investigate potentially illegal trade practices by countries in Southeast Asia. The committee aims to impose higher tariffs on products exported to the United States by companies with headquarters in China.
Despite these challenges, REC Silicon and Hanwha Qcells are optimistic about the future of solar panel manufacturing in the United States. They plan to produce solar panels entirely within the country, with Qcells taking 100% of the polysilicon produced in Moses Lake. The companies are also exploring opportunities to expand their operations and offer their products to more customers interested in domestic manufacturing.
The revival of the Moses Lake factory represents a significant step towards re-establishing the United States as a leader in solar panel manufacturing. With continued investment and support, the industry could see further growth and innovation in the years to come.
