• Sondiale secures $4.75M DFC funding for Morocco polysilicon plant planning
  
  
• Project aims to supply West markets, cut China reliance, produce by 2029
  
  
• Weak market, $800M funding need pose challenges despite long-term demand growth

Moroccan company Sondiale has secured 4.75 million dollars in funding from the U.S. International Development Finance Corporation for a planned polysilicon production facility. The investment will support early-stage planning for a plant in Morocco that aims to supply European and U.S. markets. Both regions are seeking to reduce their reliance on China, which currently accounts for about 90 percent of global polysilicon output, giving Sondiale a strategic opening despite a challenging international market.

The financing will enable Sondiale to begin design and preparatory work, Bloomberg reported this week, citing a DFC official. The report did not specify whether the support is structured as a loan or a grant. Bloomberg also said a U.S. contractor is expected to build the facility, which is planned to produce 30,000 tonnes of polysilicon per year by late 2029, equal to roughly 1 percent of current global output.

To advance the project, Sondiale, a subsidiary of GreenPower Morocco, must raise about 800 million dollars in equity and debt from domestic and international investors, according to Executive Director Tayeb Amegroud. Industry assessments from price-reporting agency OPIS suggest this will be difficult.

OPIS has described weak global conditions for polysilicon producers outside China. Its Global Polysilicon Marker index has hovered near 18 dollars per kilogram since July 2025, down from above 20 dollars at the start of the year, reflecting subdued demand and low trading volumes. Two major global buyers told the agency that wafer production at their Southeast Asian facilities was running at only 20 to 30 percent of capacity. Wafers are the intermediate step between polysilicon and the manufacture of solar cells and electronic chips.

In a report released this week, OPIS said commercial activity in the global polysilicon market remains limited, with fundamentals largely unchanged. The weak environment has hindered efforts to secure long-term supply agreements, which are crucial for financing polysilicon plants. The conditions have already delayed the 100,000 tonne polysilicon project in Sohar, Oman, originally expected to begin production in early 2025.

Despite the current downturn, market research firm Future Market Insights projects strong medium- and long-term growth for polysilicon demand. It forecasts a compound annual growth rate of 9.9 percent over the next decade, with global market value rising from 17.4 billion dollars in 2025 to 44.7 billion dollars by 2035. Europe, which accounts for about 14 percent of demand in 2025, continues to drive growth through sustainability requirements and low-carbon production standards.

Amegroud said the Moroccan project is designed to meet these standards. The plant is expected to source 90 percent of its electricity from renewable energy through a contract with a private Moroccan provider. By targeting demand in the European Union, the United States, South Korea, Japan and Malaysia, Sondiale is also positioned to benefit from the shift toward more regionalized production, a trend highlighted by OPIS.

Polysilicon production in new regions could offer alternative sourcing options for wafer and module manufacturers seeking to diversify supply chains and reduce dependence on a single region, OPIS noted, citing a market participant.

The agency cautioned, however, that success will require strong technical capabilities and sustained government support. Sondiale has already secured 100 million dollars in state funding from the Moroccan government. The company said it is also seeking up to 550 million dollars from the DFC, although no timeline was provided for securing the additional financing.

Emiliano Tossou