KUCHING: South Korea’s OCI Holdings will use the company’s Malaysia-made solar-grade polysilicon for a new solar cell production plant to be built in Texas, United States.
Last week, OCI announced it would invest US$265mil (RM1.17bil) to set up an independent solar cell production facility at its US solar subsidiary, Mission Solar Energy.
The company plans commercial production of one gigawatt (GW) of solar cells in the first half of 2026.
In the second half of the year, it would gradually increase the capacity by more than one GW to ultimately secure a total production capacity of two GW.
This project would enable OCI Holdings to establish a clean solar supply chain using non-China polysilicon from its Malaysian subsidiary, OCI TerraSus (formerly OCI Malaysia Sdn Bhd), in combination with the solar cells produced at the new US facility.
OCI TerraSus produces high purity polysilicon required by the solar photovoltaic system.
Its manufacturing facility in Samalaju Industrial Park, Bintulu, Sarawak produces 35,000 tonnes of polysilicon per year. The target is to increase the production capacity to 56,600 tonnes per year.
“OCI TerraSus’s solar-grade polysilicon is produced using Malaysia’s eco-friendly hydropower, meeting RE100 requirements, and complying with the Uyghur Forced Labour Prevention Act, which is increasingly enforced by US Customs and Border Protection.
“This ensures that the polysilicon is recognised as a competitive, clean product, making it easier for global customers to export to the US,” OCI said in a statement.
“The United States-based solar cell manufacturing business will also benefit from the Advanced Manufacturing Production Credit under the Inflation Reduction Act, which offers a tax credit of US$0.04 per watt.
“Additionally, solar projects that use these products and incorporate a certain percentage of US-made components will be eligible for an additional 10% investment tax credit, improving profitability for their customers,” it added.
OCI Holdings, which became the first South Korean company to enter the United States solar module manufacturing business in 2014, has accumulated extensive experience in large-scale solar projects.
“The establishment of this solar cell production facility is set to drive substantial cost efficiencies by utilising existing factory infrastructure and equipment while also accelerating the project timeline through pre-secured production permits.
“As a result, the project is expected to be completed more than a year ahead of competitors, positioning it as one of the industry’s most cost-effective and fastest projects.”
OCI Holdings chairman Lee Woo-hyun said the set up of the new solar cell subsidiary marks the start of US-produced solar cells made from OCI TerraSus’ polysilicon with a clean supply chain.
He said this cost-efficient and expedited project will be the foundation for further strengthening the company’s solar value chain in the United States.
The company has continued to expand its operations in Sarawak via a joint venture with Japan’s Tokuyama Corp through an investment in an electronic-grade polysilicon semi-finished product plant project.
The new 11,000-tonne plant, according to OCI Co Ltd in 2023, is scheduled to be completed and commence production in the first half of 2026.
OCI TerraSus’ current manufacturing facilities in Samalaju Industrial Park was taken over from Tokuyama in 2017.
Tokuyama was reported to have invested about US$1.99bil in two plants to produce semiconductors and solar grade polysilicon.
Following the takeover, OCI TerraSus spent about US$111.7mil to revamp the plant in two phases in 2018 and 2019 to raise its annual production capacity by 10,000 tonnes to 27,000 tonnes in 2019.
The plant was later upgraded to increase its capacity to 35,000 tonnes per year.
