Revival of Solar Panel Ingredient Production in the U.S. Signals Shift Away from Chinese Dominance
A factory in Moses Lake, Wash., that had shut down in 2019 is now set to resume shipping a critical ingredient used in most solar panels, a component that has long been produced almost exclusively in China. The factory, owned by REC Silicon, will be producing polysilicon, the building block for the majority of solar panels, in partnership with South Korean company Hanwha Qcells.
The decision to reopen the factory comes as a part of a larger effort to establish a complete domestic supply chain for solar panels in the United States and reduce reliance on Chinese and Southeast Asian plants. This move is also in line with President Biden’s climate law, the Inflation Reduction Act, which provides incentives for domestic manufacturing.
Industry executives have expressed optimism about the revival of domestic production of polysilicon, highlighting the need for more cell manufacturing outside of China. Currently, Chinese and Southeast Asian factories account for over 95 percent of solar panel production using polysilicon, making it challenging for manufacturers in the U.S. to compete.
The Biden administration has been working to revive the U.S. solar manufacturing industry through various policies, but recent increases in solar panel production in China have posed challenges for American manufacturers. To address this issue, the American Alliance for Solar Manufacturing Trade Committee has petitioned for an investigation into potentially illegal trade practices by countries like Cambodia, Malaysia, Thailand, and Vietnam, which could impact U.S. solar manufacturers.
Despite these challenges, companies like REC Silicon and Hanwha Qcells are committed to expanding their operations in the U.S. and producing solar panels entirely within the country. The reopening of the Moses Lake factory and the investment in domestic manufacturing signal a shift towards a more self-sufficient solar industry in the United States.
As the U.S. aims to maximize the opportunities presented by the Inflation Reduction Act, industry executives are hopeful that further incentives and support from the government will help drive growth in domestic solar manufacturing. The revival of the polysilicon production in Moses Lake is seen as just the beginning of a new wave of growth for the plant, with potential for further expansion in the future.
