With the passage of the Inflation Reduction Act, the US has indicated they are ready to tackle this issue domestically. China produces much of the world’s solar-grade polysilicon — a key precursor for production of solar cells . The country’s dominance over the supply chain also has led to global polysilicon shortages in recent years, as demand for solar panels has grown while production of the material has failed to expand outside of the country.
The law’s manufacturing tax credit of $3 per kilogram for solar-grade polysilicon manufactured in the U.S. would be a
“jump-start” for the industry, creating the certainty needed to spur large investments in new production facilities, says Chuck Sutton, vice president of fluidized bed reactor polysilicon sales at Singapore-based solar power company REC Silicon.