Filed under: metallurgy, purchasing management, raw materials, silica, silicon, solar power, sustainable development
Metallurgical grade silicon is produced from silica under great heat (1900°C) in electric arc furnaces. As for alumina production, high energy costs make up a major part of the silicon production costs. Depending on the degree of purity generated – the purification process is very long and complex -, the price of silicon can vary between USD 2/kilo for metallurgical grade silicon used in compounds (for example with aluminum) mainly in the automotive industry and USD 2700/ kilo for superpure silicon used in the semiconductor industry.
Silicon prices had been rising sharply during the .com bubble at the end of the 90s because of the growing demand in the technology sector. After 2000, demand decreased and prices fell temporarily under the production costs. Many silicon manufacturers had to close down causing to a silicon shortage and making prices begin to climb.
Silicon used in the solar power industry makes up about 1% of the worldwide demand of this raw material. Almost all the rest of the production is used in the microprocessor industry. In 2000, after the bubble’s burst, the photovoltaic industry had some nice months buying cheap surplus silicon not used any longer by the technology companies.
Today, things have changed and prices of silicon for the solar industry have climbed from USD 9/kilo to over USD 60/kilo in 2006. The worldwide shortness of silicon is estimated at 20000 to 25000 tonnes per year. This amount would allow to satisfy the growing demand from the photovoltaic industry. But investing into this sector – like so many other raw material industries – is extremely cost expensive. Today, the estimated break-even of a profitable silcion plant is at an annual 5000 tonnes, which represents a cost of USD 500M.
Governments and environmental organizations are afraid that silicon shortness may stop the growth of nvestment into solar power, often considered as the main future source of energy.
For the moment measures remain limited. Companies of the photovoltaic industry receive public subsidies to work profitably and invest in R&D to develop cheaper technologies.
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Pay one, take two! 
I HAVE A 160 ACRE CLAIM WITH OVER 350,000 TONNES OF 97.50% PURE SILICON ORE FOR SALE. THE ORE CONTAINS GOLD, SILVER, COPPER. WILL LEASE THE SITE. THERE IS A GOLD MINE ON THE SITE THAT HAS .01 TO 20 OZ TO THE TONNE, THAT WOULD BE INCLUDED WITH THE LEASE. WILL SELL ALL RIGHTS TO THE CLAIM FOR $4,000,000.00. tHE MINE IS THE GOLDEN PEARL LOCATED NEAR SALOME, ARIZONA. ALL THE GOLD IS FREEMILLING, FLOUR GOLD. CAN FAX A COPY OF THE LEASE IF NEEDED. CONTACT ME AT 520 586 4439 AFTER 10 DEC 2007 I WILL BE OUT OF THE COUNTRY TILL THEN.
Comment by RODNEY HARALSON October 28, 2007 @ 11:58 pm