The world is undergoing a sustainable energy transition. Governments, businesses, investors and consumers are adopting decarbonization measures and transitioning away from fossil fuels at a historically unprecedented scale. As emerging technologies proliferate – through the increased adoption of EVs and the growth of solar power, for example – the demand for the key material inputs to these technologies, including silicon, is rising dramatically. As a result, silicon is central to the production of aluminum and other alloys, silicones, electronics (including computer chips) and solar cells.
The Energy Transition
The ambition to promote low-carbon energy production, along with the long-term supply challenges and pricing uncertainty in the global hydrocarbon markets, have catalyzed major investments in solar panel development and large-scale installation projects globally. As these trends continue, we expect demand for silicon metal to increase in-step, with limited alternative materials currently capable of replacing silicon metal with the same performance at a competitive cost.
Demand of silicon metal expected to rise by approx. 21% in 2023 to almost 300,000 tonnes
Silicon metal is expected to play a leading role in the sustainable energy transition