China-based global solar PV manufacturer GCL Technology Holdings is reportedly in talks with Saudi Arabia to set up a 120,000 tons/year polysilicon manufacturing fab in the Middle Eastern nation. It will be GCL's 1st international fab.
It has already filed for registration in the country. If all goes well, the fab can be commissioned as early as 2025, according to the group's Co-CEO Tianshi Lan.
Potential investments have also been considered by the group in Mexico and Australia, but the Saudi Arabian talks are at an advanced stage. The location is strategic for GCL as it will enable it to target supplies to Africa and Europe.
At SNEC 2023, in an exclusive interview with TaiyangNews, Lan had shared the company's plans to move beyond China to establish an FBR facility within the next 2 years (see SNEC Exclusive: GCL Tech Executive Interview).
For oil producer Saudi Arabia, that's currently entirely dependent on polysilicon imports as are most parts of the world, it would be a good development as it should encourage solar panel production within the country.
Transitioning from being the world's oil supplier to solar energy producer, Saudi Arabia aims to localize the solar value chain, including polysilicon production, offering an opportunity to develop 10 kilotonne per annum (KTPA) for the domestic market, for an expected investment of $1.1 billion.
According to Saudi Arabia's national investment promotion platform Invest Saudi, the country would offer up to 75% of project financing by Saudi Industrial Development Fund (SIDF) and 2-year grace period for repayment of loans to the companies interested in setting up a polysilicon plant in the country.
Additionally, the Saudi Human Resources Development Fund (HRDF) will cover monthly salaries for 30% to 50% of Saudi employees, with 10% extra for females for 2 years, in an effort to act as an enabler for domestic polysilicon production.