REC Silicon secures US$40 million Hanwha loan to aid Moses Lake shutdown

Facebook
Twitter
LinkedIn
Reddit
Email
This loan joins others the company has secured from a subsidiary of Hanwha Solutions. Image: REC Silicon

REC Silicon has secured a US$40 million term loan from Hanwha International LLC, a subsidiary of Korean conglomerate and REC majority shareholder, Hanwha Solutions, to support its transition away from polysilicon production.

The loan will support REC Silicon’s capital needs during the shutdown of its US polysilicon production plant and transition into a “pure play silicon gas provider”, the company said.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Two previous US$25 million bridge loans from Hanwha International will also be rolled into the new loan upon their maturity dates, extending them.

REC Silicon announced the abandonment of polysilicon production in Moses Lake, Washington at the start of this year. It said that the shutdown followed an unsuccessful polysilicon quality test and the subsequent termination of its supply agreement with solar manufacturer Qcells North America, which is also owned by Hanwha Solutions.

The agreement with Qcells was formally terminated along with the announcement of the Hanwha International loan last week (24 January). As part of the termination, the “reimbursement of the prepayment of US$30 million by REC Silicon to QCells has been delayed for one year without interest,” REC said.

“Proceeds from the loan will strengthen REC Silicon’s liquidity position and provide it with the capital necessary to cease production at Moses Lake safely and in compliance with applicable regulation,” it added.

The US$40 million loan is secured against REC’s assets, though the announcement did not specify whether this refers to the remaining facilities at Moses Lake or the company’s silane gas facility in Butte, Montana.

REC said it is undergoing a “strategic review to address financial and operational challenges…considering additional cost reduction activities, financing options, and other mitigative actions.”

Minority shareholder concerns

Following the shutdown of the Moses Lake facility, a group of minority shareholders in REC Silicon, mostly based in the company’s native Norway, banded together to seek more information on the decisions made by the majority shareholder, Hanwha Solutions.

This group of shareholders and some polysilicon market experts raised questions about the sequence of events which led to the quality test failure and Qcells’ decision to pull out of the supply deal. Both Johannes Bernreuter, a polysilicon market analyst, and an unnamed US-based technical expert told PV Tech Premium last week of their initial “scepticism” over the claims of quality issues. Other sources have pointed to inconsistencies in REC’s polysilicon product, which may have perturbed Hanwha Qcells.

Reacting to the most recent loan from Hanwha International, the minority shareholder group said on its website: “On the positive side, a company affiliated with the largest shareholder is providing additional financing and the maturity of existing loans has been extended. 

“Unlike previous announcements, this time it is explicitly stated that the financing is secured through collateral in the company’s assets. It remains unclear whether this pertains to Moses Lake, Butte, or both. This uncertainty adds to a growing “black box” of secrecy.

“As shareholders, we are still left without clarity about what transpired between the successful laboratory test in September 2024, which gave the green light, and the failed production test in December 2024.”

A few days after the Moses Lake shutdown, Hanwha has signed a polysilicon supply deal with OCI Holdings for product manufactured in Malaysia.

11 March 2025
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.
17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.
7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

February 17, 2025
Round-up of community solar news with new legislations progressing in the US states of Missouri and Iowa, while New Mexico started construction on the first project in the state.
February 17, 2025
Lee Zeldin said the EPA should "reassume responsibility" for funds issued under the Greenhouse Gas Reduction Fund.
Premium
February 14, 2025
“As the market develops, there’s more sophisticated views of the market,” said Aldevinas Burokas at Solar Finance & Investment Europe 2025.
February 14, 2025
Environmental Law & Policy Center argued that PJM’s scoring system would favour specific resource classes, such as combined cycle gas.
February 13, 2025
A report from CEA says that the impact of the new Republican administration on the provisions under the IRA remains “uncertain”.
February 13, 2025
Chinese solar manufacturers LONGi and Jinko Solar, along with Indian PV manufacturer Waaree Energies, have been named in a series of patent disputes filed in China and the US.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 19, 2025
Tokyo, Japan
Solar Media Events
March 11, 2025
Frankfurt, Germany
Solar Media Events
March 18, 2025
Sydney, Australia