The revival of a factory in Moses Lake, Wash., is set to shake up the solar panel industry as it prepares to resume shipping a critical ingredient that has long been dominated by Chinese manufacturers. REC Silicon, the owner of the factory, has partnered with South Korean company Hanwha Qcells to restart production of polysilicon, the key component in most solar panels.
The move comes as American lawmakers and energy executives have been pushing to establish a complete domestic supply chain for solar panels and reduce reliance on Chinese and Southeast Asian plants. The factory’s reopening was partly driven by incentives in President Biden’s Inflation Reduction Act, aimed at promoting domestic manufacturing in the renewable energy sector.
Industry executives hope that the revival of domestic polysilicon production will encourage other companies to follow suit and help the United States regain its position as a leader in solar technology. Currently, factories in China and Southeast Asia produce over 95 percent of the world’s solar panels, with Chinese manufacturers enjoying significant government support and tariffs on imports.
The Biden administration has been working to revive the U.S. solar manufacturing industry through policies like the Inflation Reduction Act, but faces challenges from increased production and lower prices in China. To address this, 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.
Additionally, concerns have been raised about forced labor in the production of polysilicon in China and other countries, leading many companies to pledge to avoid products that rely on such practices. The reopening of the Moses Lake factory represents a step towards a more sustainable and ethical supply chain for solar panels.
With plans to expand operations and potentially offer their product to more customers interested in domestic manufacturing, REC Silicon and Hanwha Qcells are optimistic about the future of solar panel production in the United States. The executives believe that further government incentives may be necessary to fully realize the potential of the Inflation Reduction Act and boost domestic manufacturing in the renewable energy sector.
