RIYADH: Indonesia will establish a $4 billion polysilicon industry amid efforts to boost solar panel production.
Polysilicon is a vital material for solar panels, and prices soared to a 10-year high in 2021, driving local solar firms to boost production of the material.
Indonesia is seeking to boost industry production in the country at lower levels than prevailing market prices as it seeks a move away from fossil fuels towards green energy instead, Bloomberg reported.
The Asian country also has a wish to generate 5.3 gigawatts by 2030 through vast solar panel installations.
Two plants are already in progress as a result of a collaboration between potential investors and domestic firms, Bloomberg reported, citing Septian Hario Seto, a deputy for mining and investment at the Coordinating Ministry for Maritime Affairs and Investment.
The first plant, worth $800 million, will be located in Batang, Central Java. It is set to open in the third quarter of 2022 and has an estimated production of 40,000 tons of polysilicon in its preliminary phase.
The second plant has an accumulated worth of $3.2 billion and is set to open in North Kalimantan with an estimated production of 160,000 tons of polysilicon.
This is expected to bring about a phase of excess supply in the country soon.
