A $1.7 Billion Overseas Polysilicon Project: Actually "Chinese Capacity"?

Recently, despite opposition from the US executive director, the International Finance Corporation (IFC), a member of the World Bank Group, approved a $250 million (approximately 1.796 billion RMB ) loan for a large-scale solar polysilicon project in Oman.

According to detailed information, the project is led by United Solar , with a total investment of $1.6 billion , and plans to build a polysilicon plant with an annual capacity of 100,000 tons in the Sohar Free Zone in Oman. Upon completion, the factory will cover 160,000 square meters and can meet the production needs of 40GW solar modules, equivalent to approximately 10% of the world's newly added photovoltaic installations. It is expected to start production at the end of 2025 and reach full capacity in 2026.

However, according to informed sources, in the vote on the "United Solar Polysilicon Project," in addition to the United States, three other executive directors abstained, representing Germany, the Netherlands, and the Nordic countries.

Several opposing and abstaining countries believe that the project is essentially an "extension of Chinese capacity overseas".

After a thorough investigation of "United Solar," PV Info found that the US statement that the project is an "extension of Chinese capacity overseas" is not unfounded, and the company does seem to have some connection with China.

The chairman and founder of United Solar is Zhang Longgen , a familiar name.

Zhang Longgen previously served as an executive at a leading Chinese polysilicon company, Xinyi Group, and a director of Daquan Energy. In June 2020, Cayman Daquan transferred 1% of its shares in the issuer to Zhang Longgen. On August 4, 2023, Zhang Longgen resigned from Daquan Energy, and then United Solar in Oman disclosed sales orders for polysilicon from Chinese companies. In 2024, PV Info speculated that the mastermind behind the Oman polysilicon project might be Zhang Longgen, and now the answer is gradually becoming clear. ( The departure of several senior executives from Daquan, indicating an overseas silicon material project? )

In addition, the equity structure shows that one of the major shareholders of United Solar is the Chinese private equity firm IDG Capital, and IDG Capital was not removed from the US list of Chinese-related companies until December 2024.

However, the US side pointed out that the project may exacerbate global polysilicon overcapacity. Data shows that China currently accounts for over 85% of global polysilicon production, but due to slowing demand, several Chinese manufacturers have recently announced production suspensions for maintenance.

Ultimately, the IFC passed the financing plan by a majority vote, including a $200 million loan and a $50 million preferred equity investment. In response to questions, an IFC spokesperson emphasized that the project approval strictly followed environmental and social sustainability standards, and that Oman, as a neutral country, could effectively balance geopolitical risks. "Our investment decisions are based on the project's own economic viability and emission reduction potential, not the political stance of a single country." The spokesperson revealed that United Solar has pledged to adopt the most advanced low-carbon production processes, reducing unit product carbon emissions by 30% compared to the industry average.

Oman is located at the throat of the Persian Gulf and has abundant natural gas resources and low energy costs, which provides a natural advantage for the energy-intensive production of photovoltaic silicon materials. For Oman, this project represents a turning point in the nation's destiny. The project is a core project of Oman's "Vision 2040," helping to drive the transition of the economy from oil dependence to clean technology exports, and plans to link downstream industries to form an industrial cluster.

Undercurrents are still surging. Despite the approval of the financing, the US may in the future use trade barriers, anti-dumping duties, and other means to restrict the import of Omani silicon materials. For China, the project is both a new path for "exporting capacity" and may intensify competition with domestic companies. This polysilicon game spanning Asia, Africa, and Europe and America has only just begun.