The United States is backing a Moroccan company planning to produce a highly purified form of silicon used in semiconductors and solar panels, as Washington ramps up efforts to reduce dependence on China for critical technology materials.
Sondiale SA aims to build an $870 million facility in southern Morocco to manufacture polysilicon, and has secured $4.75 million in pre-investment development funding from the US International Development Finance Corp. (DFC), according to the agency.
A US contractor will lead development of the plant, which is expected to supply high-purity polysilicon to the US and allied markets, Bloomberg reported.
Rivalling China’s dominance
The support comes as the US seeks alternatives to China, which currently produces more than 90% of the world’s polysilicon. Beijing has tightened controls over resources such as rare earths amid escalating trade tensions, underscoring its dominance of key supply chains.
The company will target customers in the European Union, Japan, South Korea, Singapore and Malaysia. The firm is seeking to raise about $800 million in equity and debt from local and foreign investors, with as much as $550 million potentially coming from the DFC.
The plant, scheduled to open in the city of Tan-Tan in late 2029, is expected to produce 30,000 tons of polysilicon annually, around 1% of current global output, Amegroud said.
Morocco, a nation of 38 million on the Mediterranean, is seeking to leverage its free-trade agreements with the US, the EU and others to attract investment and ease high youth unemployment that has fueled recent protests.
Sondiale, an affiliate of Tangier-based GreenPower Morocco, has already secured $100 million in support from the Moroccan government, which considers the project strategic.