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					</table>Norway-based polysilicon manufacturer <a href="https://recsilicon.com/" target="_blank" rel="noopener">REC Silicon</a> reported a revenue of $40.5 million in the fourth quarter (Q4) of 2023, a 28% year-over-year (YoY) rise from $31.6 million, driven by strong performance in the semiconductor business.
The company had posted lower YoY revenues for all other quarters in 2023, signaling a recovery in a market battered by excess inventories.
Revenue from semiconductor materials rose 28% to $40.3 million from $31.5 million last year on the steady power device market, helped by rapid growth in mobile applications, renewable energy, and electric vehicles.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), however, came in at a loss that widened to $31.2 million from $23.6 million last year. The increased EBITDA loss was primarily due to wider losses in the solar materials segment.
The solar materials segment&#8217;s EBITDA loss widened to $25.8 million in Q4 2023 from $10.5 million in Q4 2022. This reflects continued expenditures to restart production at the Moses Lake facility in Washington.
REC Silicon restarted production at its Moses Lake polysilicon facility in Q4 2023 and is targeting to ramp up to full capacity by the end of 2024.
Total polysilicon sales volumes, including by-products, fell 8.5% sequentially to 182 MT from 199 MT in Q3 as demand from China cooled.
Net profit was $104.4 million compared to a net loss of $26 million in Q4 2022. The profit was mainly due to a $135.5 million gain from the sale of the Yulin joint venture in China.
Additionally, the company said that the Red Sea Crisis has affected its scheduling and freight costs in European routes.
FY 2023
Revenues decreased 4% to $141.1 million compared to $147.8 million in FY 2022 due to lower polysilicon sales volume, partially offset by higher average selling prices.
The total polysilicon sales volume has halved to 749 MT from last year.
EBITDA loss in FY 2023 widened to $80.5 million from $34.9 million YoY, driven by lower revenues and higher operating expenses.
Net profit was $30.5 million compared to a net loss of $87 million last year. The swing to profit was primarily attributed to the $135.5 million gain on the Yulin JV sale.
Optimizing operations
The company also announced it will shut down polysilicon production at its Butte, Montana facility to optimize operations. The polysilicon business will continue to produce for about six to nine months to fulfill polysilicon supply obligations.
After the supply obligations are satisfied, the company expects that the workforce in Butte will be reduced accordingly.
This decision led to a $7.5 million write-down of polysilicon assets in Q4 2023.
The company’s third-quarter revenue, however, <a href="https://www.mercomindia.com/rec-silicon-q3-revenue" target="_blank" rel="noopener">fell</a> 5% on lower polysilicon prices influenced by an expansion of polysilicon plants in China, leading to oversupply and inventory growth. This followed an 18% <a href="https://www.mercomindia.com/rec-silicons-q2-net-loss-yoy-signaling-recovery" target="_blank" rel="noopener">decline</a> in revenue in the second quarter of 2023.

REC Silicon Q4 Revenue Rises on Semiconductor Strength, Signals Recovery

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					</table>Solar inverter prices have been on the rise, with crucial components such as semiconductor chips in short supply globally, and compounding this challenge is the acute shortage in the supply chain of Insulated Gate Bipolar Transistors (IGBTs), another essential inverter component.
According to Mercom India Research’s recently released <a href="https://www.mercomindia.com/product/q1-2023-india-solar-market-update" target="_blank" rel="noopener">Q1 2023 India Solar Market Quarterly Update</a>, inverter costs increased by over 10% quarter-over-quarter as manufacturers struggled to meet the demand due to the limited availability of IGBT and other semiconductors, crucial components for inverter manufacturing.
The Indian solar sector and EVs heavily rely on the inverter component supply from Chinese manufacturers, who in turn depend on the Taiwanese chip industry for the supply of crucial components.
The recent geopolitical developments have impacted the supply chain, and the rise in demand from the global EV and solar sector has tightened inverter supplies.
&#8220;The global chip shortage, starting from the second half of 2020, has had a significant impact on inverter production since chips are crucial components in their manufacturing,&#8221; stated the spokesperson from <a href="https://en.si-neng.com/" target="_blank" rel="noopener">Sineng</a>. &#8220;Adding to this challenge, there is also an acute shortage in the supply of IGBTs. While China&#8217;s solar industry holds a dominant share of the world&#8217;s production capacity, it heavily relies on IGBT imports from overseas manufacturers.&#8221;
The shortage of PCBs and IGBTs has disrupted supply chains, leading to potential production delays and delivery constraints. This, in turn, could impact the cost of solar projects.
&#8220;The current chip supply shortage can be primarily attributed to the ongoing issues between China and Taiwan. To mitigate the impact, we explored the use of European semiconductors, but unfortunately, the quality did not match that of their Taiwanese counterparts,&#8221; another inverter manufacturer said.
He added,&#8221; This situation has shed light on the over-dependence on a single supplier, emphasizing the need for the industry to proactively develop and diversify the supplier base across different regions. By cultivating additional suppliers in various locations, we can strive to avoid similar scenarios in the future and ensure a more resilient and robust supply chain.&#8221;
Supply Chain Diversification to Meet the Demand
Despite these challenges, most inverter manufacturers have managed to meet the demand for their products. The manufacturers Mercom spoke to said that they were able to fulfill their orders as they had long-term relations with the chip suppliers and took proactive measures to secure stable supplies.
&#8220;The chip supply for inverters faced significant constraints during the first half of last year, causing difficulties across the manufacturing sector,&#8221; explained a spokesperson from <a href="https://www.ginverter.com/?gclid=CjwKCAjwkLCkBhA9EiwAka9QRjG5rO0u6Q-Dbvb8g96SPimsbb23XJ2awHWITZdSsvIS_peSh_bYmBoCNBUQAvD_BwE" target="_blank" rel="noopener">Growatt</a>, a prominent inverter manufacturer. &#8220;However, as we entered the second half of the year, the chip supply situation gradually stabilized, and there has been no shortage of chips throughout this year. To further ensure a steady supply, we have entered into a priority supply agreement with Onsemi, a reputable chip manufacturer.&#8221;
China&#8217;s chip industry has made remarkable strides in recent years, providing high-quality chips for various applications. &#8220;As part of our efforts to diversify and strengthen our supply chain, we are planning to incorporate domestic chips in our low-power products,&#8221; reveals the spokesperson from Growatt. &#8220;This strategic decision aligns with the advancements in China&#8217;s chip manufacturing capabilities and will enhance our overall product portfolio.&#8221;
Another prominent inverter manufacturer Mercom spoke to voiced the same opinion and said, &#8220;During the first half of the previous year, the availability of chips faced notable constraints; however, in the latter half, the supply gradually stabilized, returning to normal levels. This year, there has been a consistent and ample supply of chips without any shortages. We have signed an exclusive supply agreement with a prominent global chip supplier to ensure a steady and reliable chip supply.&#8221;
Though the supply chain issues have been easing, the inverter prices have increased, according to the inverter manufacturer. The manufacturer Mercom spoke to said, “The prices of inverters have seen a significant increase for several reasons. Firstly, inflation in China, a major manufacturing hub for inverters, has played a crucial role. The rising cost of labor, raw materials, and overall production expenses in China has led to higher manufacturing costs, subsequently impacting the pricing of inverters. Secondly, the increased prices of raw materials used in the production of inverters have also contributed to the overall cost.”
They also stated that the marginal difference between supply and demand has contributed to the increase in price.
The global chip shortage has presented significant challenges for the inverter manufacturing industry, impacting the availability of crucial components such as chips and IGBTs.
The supply chain diversification and the new capacities for chip manufacturing have been able to float the industry through the shortage for now.
Manufacturers are now proactively addressing the challenges by diversifying suppliers, establishing partnerships, and exploring domestic chip manufacturing capabilities. With continuous efforts, the inverter manufacturing sector aims to restore the supply-demand balance, ensuring a steady and reliable flow of components.
As the renewables industry continues to expand, collaboration between manufacturers, chip suppliers, and policymakers becomes crucial to overcome these challenges and support the sustainable growth of the solar energy sector.

Solar Inverter Suppliers Optimistic About Chip Availability Amid Global Shortage

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					</table>Here are some noteworthy cleantech announcements of the day from around the world:
Hero MotoCorp and Hindustan Petroleum Corporation (HPCL) <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/9f5cbf14-f2c7-45e6-b9f2-8149e2a16b7f.pdf" target="_blank" rel="noopener">entered</a> into a collaboration to establish charging infrastructure for electric vehicles (EVs) in the country. As a part of the initiative, the companies will set up charging infrastructure for two-wheeler EVs across the country. The two companies will first establish charging infrastructure at HPCL’s existing network of nationwide energy stations, with the likelihood of broadening the collaboration for supplementary business opportunities. In the first phase, charging stations will be set up in select cities, which will then be expanded to other key markets to establish a high-density EV charging station network across the country. Hero MotoCorp will lead the infrastructure development for the charging network. Each charging station will feature multiple smart and fast chargers, including DC and AC chargers, that will be available to all two-wheeled EVs.
The Union Cabinet has <a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1861129" target="_blank" rel="noopener">approved</a> modifications in the program for developing semiconductors and display manufacturing in India. Under the modified program, uniform fiscal support of 50% of project cost will be provided across all technology nodes for setting up semiconductor fabs. Given the niche technology and nature of compound semiconductors and advanced packaging, the modified program will also provide fiscal support of 50% of capital expenditure to set up compound semiconductors/silicon photonics/sensors / discrete semiconductors fabs and Assembly Testing Mark Pack (ATMP)/ Outsourced Semiconductor Assembly and Test (OSAT). The modified program is expected to expedite semiconductor and display manufacturing investments in India.
Energy Vault Holdings, a grid-scale energy storage solutions company, <a href="https://www.businesswire.com/news/home/20220915005772/en/" target="_blank" rel="noopener">announced</a> a mandate of an initial 2 GWh gravity energy storage project and the deployment of Energy Vault’s Energy Resiliency Centers at the zero carbon industrial parks in China that will deploy Energy Vault’s EVx gravity energy storage technology. In partnership with Atlas Renewable, EIPC (a policy-oriented supporting organization (NGO) of the Investment Association of China), in conjunction with China Tianying and selected provincial and local governments, will develop five national zero carbon industrial parks, some of which will be built in previously underserved economic regions throughout China. The parks will utilize Energy Vault’s gravity energy storage technology and its Energy Management Software platform to support China’s mandated climate change and environmental policy: Carbon Peak in 2030 and Carbon Neutrality in 2060 – commonly referred to as “30-60.”
RWE, a German multinational energy company, and Latvenergo, a state-owned electric utility company in Latvia, <a href="https://www.rwe.com/presse/rwe-renewables/2022-09-16-rwe-und-latvenergo-bndeln-ihre-krfte-fr-offshore-wind-in-lettland" target="_blank" rel="noopener">signed</a> a framework agreement to work together on the development, construction, and operation of offshore wind farms off the Latvian coast. The equal partners combine their experience in the development, efficient implementation, and safe operation of offshore wind farms with extensive knowledge of the Latvian energy market and the power supply in the Baltic States.
Iberdrola <a href="https://www.iberdrola.com/press-room/news/detail/iberdrola_environmental_impact_permit_photovoltaic_cedillo" target="_blank" rel="noopener">announced</a> that it had obtained the Environmental Impact Statement for the construction of a new 375 MW photovoltaic project in the town of Cedillo in Cáceres. The new plant will have sufficient capacity to supply 178,000 homes with clean energy, more than the population of a city like Badajoz, and will prevent the emission of 77,000 tonnes of CO2 per year. The installation will have more than 576,000 bifacial photovoltaic modules that allow for higher production, as it has two light-sensitive surfaces. In this way, it will be able to produce more than 582,400 MWh of indigenous green energy per year which would have required more than 97 million cubic metres of gas to be generated by a combined cycle.

Daily News Wrap-Up: Hero MotoCorp Partners with HPCL to Deploy EV Charging Stations Across India

<a href="https://www.recsilicon.com/" target="_blank" rel="noopener">REC Silicon</a>, a leading producer of advanced silicon materials, posted a revenue of $43.2 million in the fourth quarter (Q4) of the calendar year (CY) 2021, up 20% compared to $36 million during the same period last year.
The revenue increased by 19% in Q4 2021, compared to $36.2 million in Q3 2021.
The company&#8217;s total revenue for 2021 stood at $142.8 million, up 18% compared to $121.4 million in 2020.
The strong demand in the semiconductor market resulted in increased sales opportunities for semiconductor-grade polysilicon during Q4 2021. The company aims to upscale its solar-grade polysilicon production and the battery components production supported by the global demand forecast for these products.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at a loss of $400,000 for Q4 2021, which was an improvement of 89% compared to the loss of $3.7 million in the last quarter. The EBITDA did show more loss compared to $1.9 million profit during the same period last year.
The company reported an EBITDA of $9.3 million contributed by the semiconductor materials segment during Q4 2021, up by 416% compared to $1.8 million in Q3 2021. The increase in EBITDA contribution was primarily due to higher production volumes of intermediate products and lower electricity prices during the quarter.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-32767" src="https://mercomindia.com/wp-content/uploads/2022/02/Capture.png" alt="" width="477" height="373" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Capture.png 477w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Capture-300x235.png 300w" sizes="(max-width: 477px) 100vw, 477px" />
The total polysilicon sales volume increased by 84 MT to 481 MT in Q4 2021, compared to 397 MT during Q3 2021. The semiconductor grade polysilicon sales volume increased by 137 MT to 371 MT. The solar-grade polysilicon sales volume decreased by 53 MT to 110 MT in Q4 2021.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-32768" src="https://mercomindia.com/wp-content/uploads/2022/02/Capture-1.png" alt="" width="459" height="402" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Capture-1.png 459w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Capture-1-300x263.png 300w" sizes="(max-width: 459px) 100vw, 459px" />
The company stated that average polysilicon prices for Q4 2021 increased by 15.1% compared to the last quarter due to the increase in semiconductor polysilicon sold during Q4 2021. Average prices for solar-grade polysilicon increased by 6% compared to the prior quarter.
The total polysilicon production volume for Q4 2021 was 316 MT compared to 295 MT in Q3 2021. The production utilization increased during Q4 2021 due to the completion of a planned maintenance outage in Q3 2021.
Polysilicon price movement
The company noted that in Q4 2021, polysilicon prices increased in the early part of the quarter by 10% to about $36.8/kg and ended the quarter with $30.5/kg as demand in the year-end fell and wafer producers reduced inventory. Polysilicon supply in China was stable as most producers focused on inventory control, with anticipated seasonal declines in demand at the end of the year. Polysilicon prices remained significantly higher at the end of 2021 compared to prices of $11.1/kg at the beginning of 2021.
Solar grade polysilicon prices increased to $32/kg at the beginning of the first quarter of 2022. Prices are expected to remain stable in the first part of the year. Polysilicon supply will increase through 2022 as new capacity comes online.
In 2020, REC Silicon and Violet Energy Corporation had <a href="https://mercomindia.com/daily-news-wrap-up-rec-silicon/" target="_blank" rel="noopener">joined</a> hands to develop an integrated domestic solar manufacturing supply chain. REC Silicon had invested over $1.7 billion in a facility employing its proprietary silane gas-based fluidized bed reactor for granular polysilicon.

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