REC Silicon Secures 100% Offtake Agreement With Hanwha

Hanwha Solutions To Procure FBR Polysilicon From REC Silicon Under 10-Year Take-Or Pay Offtake Binding Agreement

REC Silicon Secures 100% Offtake Agreement With Hanwha

REC Silicon has found an offtaker for its FBR polysilicon in its equity investor Hanwha Solutions. (Illustrative Picture; Photo Credit: Bjoern Wylezich/

  • Hanwha Solutions has entered a binding term sheet agreement with REC Silicon’s solar subsidiary
  • It entails the South Korean company to offtake 100% of prime FBR production from REC’s Moses Lake fab in the US
  • REC says an offtake agreement was a prerequisite for the company to restart the fab by Q4/2023, and fully ramp it up by 2024-end

Polysilicon supplier to the solar industry, Norway’s REC Silicon is inching closer to restarting its Moses Lake fab in the US after achieving a major prerequisite for its reopening in the form of securing a binding 10-year take-or pay offtake agreement with Hanwha Solutions for 100% of prime FBR production from the facility.

Signed between its subsidiary REC Solar Grade Silicon LLC and an equity investor in REC Silicon, Hanwha Solutions, the binding term sheet is expected to help the fab restart in Q4/2023 as it targets to achieve full capacity utilization by the end of 2024.

“The offtake with Hanwha Solutions provides REC Silicon with the necessary predictability to restart the idled Moses Lake facility with the USA market share leader as our key partner and make available high volumes of cost competitive, high quality, ethically produced, low carbon solar grade polysilicon to the fast-growing solar industry and enable the re-shoring of key parts of the solar value chain in the USA,” said REC Silicon CEO, Kurt Levens.

Hanwha will make an advance payment once a full form agreement is executed, which should happen in the coming months.

Financial terms were not disclosed, however REC said the base price for the offtake will be determined by market indices adjusted for a premium for US-sources low carbon material. REC did add that the base price will be subject to both a minimum and maximum that protects it against potential future low market prices that could otherwise threaten its long-term prospects.

Hanwha is trying to establish a vertically integrated solar supply chain in the US and local supply of polysilicon is the most important piece of the puzzle which is now to be supplied by REC Silicon.

The South Korean company already operates 1.4 GW module fab in Georgia, US and recently announced plans to invest KRW 3.2 trillion to build a solar hub in the state for in-house production of ingots, wafers, cells and modules with a combined 8.4 GW capacity (see Hanwha Solutions Planning 8.4 GW US Production Capacity).

About The Author

Anu Bhambhani

SENIOR NEWS EDITOR Anu is our solar news whirlwind. At TaiyangNews, she covers everything that is of importance in the world of solar power. In the past 9 years that she has been associated with TaiyangNews, she has covered over thousands of stories, and analysis pieces on markets, technology, financials, and more on a daily basis. She also hosts TaiyangNews Conferences and Webinars. Prior to joining TaiyangNews, Anu reported on sustainability, management, and education for leading print dailies in India. [email protected]

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