How Indian companies are gearing up to develop Polysilicon manufacturing capacity
India is making strides in the polysilicon manufacturing sector as companies gear up to compete with Chinese manufacturers. The growing demand for solar power and increasing interest in reducing reliance on Chinese suppliers have prompted Indian companies to take action.
One of the major players in this space is Reliance New Energy Solar Ltd, a wholly-owned subsidiary of Reliance Industries Limited (RIL), which is the largest private sector corporation in India. RIL has announced its plans to set up four giga factories for solar modules, storage batteries, electrolyzers, and fuel cells in Jamnagar, Gujarat, with a total investment of INR60,000 crore ($8.14 billion) within three years. RIL is also reportedly in talks with China-based Hualu Engineering and Technology Co., Ltd. about building a polysilicon plant.
Adani Infrastructure & Developers Pvt Ltd, a member of the logistics conglomerate Adani Group, has been active in the solar industry since 2016 with the opening of its 1.5 GW solar cell and module factory in Mundra, Gujarat. Plans for an adjacent polysilicon plant were put on hold in 2017. Jindal India Solar Energy Ltd is a new entrant in the Indian solar industry and was acquired by Jindal Poly Films Ltd in August 2021.
Despite the challenges, there is still an opportunity for Indian companies to establish themselves as significant players in the polysilicon market. Even if the cost of manufacturing polysilicon in India is $3/kg higher than in China, the cost difference would only translate into 0.9 cents per watt at a specific silicon consumption of 3 grams per watt. Additionally, the cost advantages of a fully integrated solar factory, as well as saved freight costs, could compensate for this difference. Nevertheless, Indian companies will face tough competition from Chinese manufacturers who have had a significant lead in production experience over the last decade. (SSEL), one of India’s largest transformer manufacturers and distribution line contractors, has also been engaged in the solar business via its subsidiary Ilios Power Pvt Ltd.
Despite the growing interest in polysilicon manufacturing in India, the country still faces several challenges. One major issue is the unreliable electricity supply, which ranks low in the World Economic Forum’s Global Competitiveness Report 2019. A solution to this problem is a captive power plant, but it increases the capital expenditure for the factory.
Another challenge for Indian companies is competing with Chinese manufacturers who have gained a significant lead in production experience over the last decade. However, there is still some room for Indian companies to compete, especially if they can take advantage of the cost advantages of a fully integrated solar factory and saved freight costs.
Indian companies are gearing up to compete with Chinese manufacturers in the polysilicon manufacturing sector. With the growing demand for solar power in the country, it is an exciting time for the Indian solar industry as it seeks to reduce its reliance on Chinese suppliers and establish its own foothold in this emerging market.
