REC Silicon, a prominent polysilicon manufacturer, has announced the cessation of polysilicon production at its facility in Butte, Montana. The decision comes amidst ongoing trade disputes between the United States and China, particularly concerning tariffs on polysilicon exports.
The closure of the Butte plant, which had been operational for over three decades, marks a significant development in the global polysilicon market. REC Silicon cited the inability to compete with Chinese producers due to the tariffs imposed by China on US polysilicon imports as a primary reason for the shutdown.
Polysilicon is a crucial component in the production of solar panels, and REC Silicon's decision is likely to have repercussions across the solar industry supply chain. The company's Butte facility had an annual production capacity of 20,000 metric tonnes of polysilicon, catering to both domestic and international markets.
The closure of the plant is expected to result in the loss of numerous jobs in the region. REC Silicon has stated that it will work with local authorities to provide support and assistance to affected employees during this transition period.
The move underscores the challenges faced by US polysilicon manufacturers in the face of global trade dynamics and highlights the interconnectedness of the renewable energy supply chain. The closure of REC Silicon's Butte plant reflects broader tensions in international trade relations and their impact on specific industries and regions.
