Market analysis of Metallic Silicon

Market analysis of silicon metal

​​ZhenAn is one of the largest silicon metal producers in China.

Silicon metal is absolutely necessary for the production of aluminum and chemical products, as it provides them with their essential properties. Many modern technologies rely on this material.

Metallic silicon cannot be replaced, and (pure) silicon cannot be recycled. There are few pilot projects in France and Germany to recycle silicon metal from solar applications, and with solar panels now reaching the end of their useful life, we are seeing growing demand.

In particular, China's market share among global producers is expected to continue to increase over the next five years, consistent with trends over the past few years. This trend may be due to repeated dumping practices due to overcapacity, which has reached 7 tons in 2020 and is expected to increase by 6 tons by 2025, while global silicon consumption is about 3 tons. Human rights issues have also been linked to silicon production in China, which is produced with forced labor by Uyghurs in the Xinjiang region and often uses coal as a source of electricity.

The silicon metal market is expected to continue growing in the coming years, driven by increasing demand for conventional aluminum and chemical applications, rapid growth in the solar industry, and promising demand prospects in the battery market.

There is no level playing field between the EU and its main competition regions when it comes to policies in the areas of energy, climate and environment. European silicon metal producers face fierce and often unfair competition from third countries, even though their production is among the most environmentally friendly and climate-friendly in the world. If the EU wants to avoid exposing its main economic value chains and impacts, it must preserve existing European production of goods. The industry is completely dependent on external supply of raw materials.