China threatens to close down polysilicon factories if energy standards are not met

China has threatened to shut down polysilicon producers, which is used as a component in solar panels, should they fail to meet the new energy standards. This was revealed by a draft measure released on Tuesday, from China's standardization office.

After the standards become official, plants that cannot meet the baseline energy usage for polysilicon of 6.4kgce/kg will be given a time limit to fix the problem. An industry group said that if, after upgrading, the plants are unable to meet the allowed standard of 5.5kgce/kg they will have to close.

According to preliminary estimates, China's Polysilicon Industry Association, Silicon Industry, said that after restructuring, China's effective polysilicon production capacity will drop to 2.4 metric tons annually, 16.4% less than it was at the end of 2024.

The industry group added that "with the strict implementation the new energy consumption standard, the supply-demand pattern of polysilicon would be significantly improved."

The draft standards are due to be implemented within 12 months. Reporting by Xiuhao chen and Lewis Jackson, Editing by Kirsty Donovan

(source: Reuters)