The United States is supporting a Moroccan project to produce high-purity polysilicon, a key material for semiconductors and solar panels, Bloomberg reports. The initiative is part of Washington’s strategy to diversify global supply chains away from China, which currently controls more than 90 percent of polysilicon production.

Sondiale SA plans to build an 870 million US dollars facility in Tan-Tan, southern Morocco, with annual output of 30,000 tons—about 1 percent of global supply. The US International Development Finance Corporation (DFC) has provided 4.75 million US dollars for pre-investment planning, while a US contractor will oversee construction to supply the US and allied markets.

The plant will primarily use renewable energy, sourcing 90 percent from a local private operator and 10 percent from state-owned utility ONEE. The production process is energy-intensive, but the company emphasises sustainability in line with global demand from chip-makers and solar-panel manufacturers.

Sondiale, an affiliate of Tangier-based GreenPower Morocco, has already secured 100 million US dollars from the Moroccan government. Executive director Tayeb Amegroud said the company is targeting markets in the European Union, Japan, South Korea, Singapore, and Malaysia, and is seeking a total of 800 million US dollars in funding, with up to 550 million US dollars potentially from the DFC.

Morocco, with a population of 38 million, is leveraging free-trade agreements with the US, EU, and other partners to attract foreign investment while addressing high youth unemployment, which has driven recent protests. The plant is scheduled to begin operations in late 2029, positioning Morocco as a new node in the global polysilicon network.