Japanese Consortium to Manufacture and Sell Polycrystalline Silicon for Solar Cells

Chisso Corp. (head office: Otemachi 2-chome, Chiyoda-ku, Tokyo; President: Shun'ichi Okada), Nippon Mining Holdings, Inc. (head office: Toranomon 2-chome, Minato-ku, Tokyo; President: Mitsunori Takahagi) and Toho Titanium Co., Ltd. (head office: Chigasaki 3-chome, Chigasaki City, Kanagawa Prefecture; President: Takeshi Kurushima) have been working since January 2007 to validate a proprietary zinc-reduction technology (the Japan Solar Silicon (JSS) method) for manufacturing polycrystalline silicon feedstock for solar cells. Given the results, the three companies agreed today to establish a joint venture and invest a total of 24 billion yen to build a factory for mass-producing polycrystalline silicon within the Kashima Okunoyahama industrial complex in Ibaraki Prefecture.

 

Global demand for solar power generation is surging as a measure to fight global warming. Demand for polycrystalline silicon, the main material used in solar cells, is expected to continue growing rapidly. The three companies therefore plan to offer a steady supply of high-quality, low-cost polycrystalline silicon. Going forward, the three companies are working toward achieving an annual production capacity of 10,000 tons.

 

1. Overview of the joint venture

1) Company name	(not decided yet)
2) Established	June 30, 2008
3) Head office	Chiyoda-ku, Tokyo
4) Factory location	Kamisu City, Ibaraki Prefecture (within the Kashima Okunoyahama industrial complex)
5) Factory space	50,000 sq. meters
6) Capital	100 million yen
7) Investment ratios	Chisso Corp. 50%, Nippon Mining Holdings, Inc. 30%, Toho Titanium Co., Ltd. 20%
8) President	Kazuo Oki (currently a director (Senior Managing Director) at Nippon Mining Holdings, Inc.)
9) Purpose of business	Manufacture and market of polycrystalline silicon feedstock for solar cells
10) Employees	About 110 (when annual production capacity reaches 3,000 tons)

2. Production plan

In phase one, the companies plan to build a mass-production plant with an annual output capacity of 400 tons. Additional facilities will be built to boost annual capacity to 3,000 tons during phase two.

 

1) Phase one

a. Annual output capacity: 400 tons

b. Construction: Starts in July 2008

c. Start of production: H1 FY2010

 

2) Phase two

a. Annual output capacity: 3,000 tons

b. Construction: Additional facilities from H1 FY2010 and beyond

 

3) Total Investment

Around 24 billion yen (phases one and two combined)

 

3. Characteristics of manufacturing technology

(1) The characteristics of the zinc-reduction process (JSS method) are as follows:

a. The process employs the same chlorination method as used in the Siemens method, the mainstream method in the market for polycrystalline silicon feedstock for solar cells. The process can produce high purity polycrystalline silicon of 8N–9N (99.999999% to 99.9999999%), meeting the performance requirements for use in solar cells.

b. In contrast to the Siemens Method, the process uses silicon tetrachloride (SiCl4) as a basic ingredient. This lowers costs because it improves the response efficiency and the silicon tetrachloride can be recycled easily.

(2) This technology combines proprietary technology developed by the three firms.