Producing polysilicon for the photovoltaic industry in Europe remains a major industrial challenge, as its manufacture relies on highly energy-intensive, ultra-high-purity processes that require consistently low-cost and reliable electricity as well as deeply integrated chemical supply chains – advantages that are already firmly established and significantly more cost-competitive in regions such as China than within the European industrial landscape.
Despite these difficulties, the CEO of Dutch startup Resilicon, Remco Rijn, is confident that Europe can still establish a competitive and strategically important foothold in polysilicon production by leveraging low-carbon electricity, advances in process efficiency, and a more circular, localized supply chain model. He argues that, while Europe may struggle to match existing cost structures in Asia, it can instead differentiate through cleaner production methods and supply security aligned with the continent’s broader energy transition and industrial resilience goals.
Resilicon is planning to build a polysilicon factory within the Groningen Sea Ports area of northeastern Netherlands. For this project, it already secured over €14 million ($16.3 million) in funding and the support of the Dutch government.
“We started with a small team and we secured some funding to do what we call the first basic engineering. And we are now almost the end of this phase,” Rijn told pv magazine. “We are aiming to produce what is known as 11N or 12N purity silicon, which means a purite of 99.999999999% and 99.9999999999%, respectively. We are going to use the Siemens process and buy almost all production equipment in Europe.”
Diversification
Resilicon is targeting three key markets: the semiconductor industry, the solar PV industry, and the silane market, which also serves fast-growing applications such battery anodes. PV is expected to remain the dominant outlet for polysilicon, as is already the case across the industry, but the company plans to adopt a more flexible product strategy.
“By diversifying our product mix, we can adjust output between polysilicon, silane, and other specialty gases depending on market demand, particularly to better serve the semiconductor industry,” the company's strategic advisor Jan Vesseur said. “Nevertheless, a substantial share of our volumes will still be directed to solar PV applications.”
The startup is currently targeting around 13 kilotons of annual production capacity, with plans to scale up to approximately 26 kilotons. In industry terms, 13 kilotons corresponds to roughly 6–7 GW of solar capacity, using the rule of thumb that about 2 kilotons of polysilicon are required per gigawatt. “At full commercial scale, we are ultimately aiming for around 30,000 metric tons of annual production capacity,” Vesseur added.
Pressure on prices
At present, polysilicon prices remain highly volatile, with Chinese producers driving extremely low price levels, often at a loss, in what is widely seen as an unsustainable market situation. Despite reports of plant closures, significant overcapacity persists and the industry remains stuck in a cycle of oversupply, with no clear short-term resolution in sight. In this environment, competing on cost alone is neither realistic nor strategically viable for new entrants in Europe.
“Rather than competing purely on price, the focus is shifting toward higher-value segments of the market,” Rijn said. “Demand for high-grade, premium polysilicon is growing, particularly for advanced solar applications and semiconductor use. This is the segment where we aim to position ourselves, alongside established players such as Wacker Chemie. We are already in discussions with customers specifically seeking this premium material.”
With polysilicon prices currently hovering around $5/kg, Rijn argues that this level does not reflect a stable market equilibrium, but rather a distortion driven by global overcapacity and aggressive pricing strategies that are not sustainable in the long term.
“If you look at the United States, where import tariffs have been introduced, prices can reach as high as around $26/kg,” he added. “This shows that even relatively simple policy measures can help create a more level playing field for companies. With such a framework in place, businesses could operate competitively under comparable conditions.”
“It also raises an important question,” he continued. “What would be the actual impact of a higher input cost, such as $26/kg, on the final price of solar panels? From a macroeconomic perspective, this creates a clear win-win dynamic. End consumers may see a modest temporary increase in solar panel prices, but this can be offset over time through innovation and scale.”
Cheap power
A key element of the company’s strategy is the use of renewable electricity, particularly from offshore wind farms in the North Sea. The expectation is that wind power prices will fall significantly over time as new capacity comes online. This is particularly relevant toward 2029, when additional projects from auctions, as well as UK-linked supply, are expected to increase surplus electricity.
“Today, energy costs remain a challenge, and grid expansion is still needed. However, as wind and solar build-out progresses, prices should decline and create structural benefits for electrification across sectors, including household appliances,” Vesseur said. “Lower energy prices could accelerate demand for electric devices and broader electrification trends in homes and industry. This reinforces the long-term logic of locating energy-intensive production close to renewable sources.”
The same dynamic could support industrial relocation to regions with abundant green power, such as Spain. “If successful, our project may also expand to other European countries in the future,” Rijn said. “Our concept links low-energy silicon production with renewable energy ecosystems, aiming to produce silicon and silane using clean electricity at scale, and this approach could be replicated elsewhere.”
Policy
Both Rija and Vesseur argue that establishing polysilicon production in Europe depends fundamentally on a stable and coherent policy framework. In their view, silicon should be formally recognized as a strategically critical material under EU industrial and raw materials strategies.
They stress that a predictable regulatory environment is essential to unlock financing, as current uncertainty significantly deters large-scale investment. The fragmented implementation of existing frameworks, including instruments such as the NZIA, is seen as insufficient to support investor confidence, leading to project delays or cancellations.
“To make European production viable, we need temporary protective measures such as tariffs or equivalent trade instruments to create a level playing field with low-cost global competitors,” Rijn said. “Targeted public support, including grants and demand-side incentives, is necessary to bridge the initial market ramp-up phase.”
Both interviewees also converge on the view that policymakers face a trade-off between short-term cost increases and long-term industrial sovereignty. They argue that, without coordinated policy support, Europe risks missing the opportunity to rebuild capacity in a strategically important sector.
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