REC Silicon announces closure of Moses Lake operation

MOSES LAKE — Owners of REC Silicon have announced the company will end production at its Moses Lake facility, beginning immediately, according to a press release issued Monday. The shutdown is expected to take about three months. 

“Production of polysilicon will be discontinued at the Moses Lake facility, while equipment involved in the production of silicon gases will be maintained in a safe and recoverable mode that incurs minimal interim costs, allowing the unit to restart with reasonable notice,” the press release said. “Once the shutdown process (in Moses Lake) is complete, REC Silicon will have completely discontinued the production of polysilicon.” 

The company closed its polysilicon production in Butte, Montana earlier this year. 

Polysilicon is used in the production of solar panels and in the electronics industry. Most production is based in China. 

Chuck Sutton, REC vice president for polysilicon sales and government relations, said in an email that sales of silane gas are still a possibility. 

“The start of the production process for REC Silicon and both the Butte site and the Moses Lake site start with producing silane gas. That silane gas can then be sold into the market as is or used to make polysilicon or other silicon gases,” Sutton wrote in answer to questions from the Herald.  

The company shut down production in Moses Lake in 2019, but announced in 2022 it would be reopening. According to a previous report in the Columbia Basin Herald, the restart was the result of an agreement with Hanwa Solutions, a solar panel maker in South Korea. Hanwa Solutions purchased about 21% of REC in late 2021 and early 2022.  

But REC was having trouble meeting the specifications required, the press release said. Company officials tried making changes to finishing and handling systems, but it wasn’t effective. 

“The company was unsuccessful in its attempts to fully rectify the issues and ultimately received an unsuccessful qualification test,” the press release said.  

Sutton said the company’s customer base for polysilicon is limited. 

“Our customer is no longer able to wait for delivery of product that meets the requirements at the correct levels. Currently there are no other customers in the USA and limited customers out of China, all of which are not options at this time due to product quality, market and contract conditions and the timing of potential needs,” Sutton wrote.  

Officials reviewed the company’s options, and eventually decided to close the Moses Lake facility. 

“Given the high fixed costs in operating the facility and uncertainty related to the timing and quantifiable success of further improvements in its product handling process, as well as the available customer base, a shutdown of the Moses Lake facility is the best way to maintain strategic optionality and financial flexibility,” the press release said. 

Sutton declined to say whether REC would be for sale. 

“We are maintaining the facility for strategic optionality,” he said. 

    REC Silicon will cease production at its Moses Lake facility, with shutdown complete by spring 2025.