The United States is backing a Moroccan industrial project aimed at producing highly purified silicon used in semiconductors and solar panels, as Washington accelerates efforts to reduce its dependence on China for critical technology materials, according to Bloomberg.
Moroccan company Sondiale SA plans to build an $870 million factory in southern Morocco to manufacture polysilicon, a key material in chipmaking and renewable energy technologies. The project has secured $4.75 million from the US International Development Finance Corporation (DFC) to support early-stage planning and preparation, Bloomberg reported.
A US primary contractor is expected to develop the facility, which will supply high-purity polysilicon to the United States and allied countries, a DFC official said in comments cited by Bloomberg.
The initiative comes amid a broader US strategy to diversify supply chains away from China, which currently produces more than 90% of the world’s polysilicon. Beijing has recently imposed restrictions on strategic raw materials, highlighting its leverage over critical segments of the global technology supply chain.
According to Tayeb Amegroud, executive director of Sondiale, the project is targeting export markets including the European Union, Japan, South Korea, Singapore, and Malaysia. The company is seeking to raise around $800 million in equity and loan financing from local and international investors, with up to $550 million potentially coming from the DFC.
The factory is planned for the city of Tan-Tan and is expected to open in late 2029, with an annual production capacity of 30,000 tons of polysilicon, equivalent to roughly 1% of current global output, according to Amegroud.
Sondiale, an affiliate of Tangier-based GreenPower Morocco, has already secured $100 million in backing from the Moroccan government, which considers the project a strategic investment.
The plant is expected to rely heavily on renewable energy, with plans for a power-purchase agreement to supply 90% of its electricity from renewable sources and the remaining 10% from Morocco’s state-owned utility ONEE.
