Rabat – The US will support Morocco to produce a silicon key to semiconductors and solar panels.

According to Bloomberg, the US decision stems from its goal to diversify suppliers and alternatives to China.

To reach this objective, Washington is set to back Sondiale SA’s production of polysilicon at a factory that will take place in Tan-Tan, southern Morocco.

In November, Morocco signed an investment to establish the industrial unit for the production of polysilicon. The project, with an investment of $800 million, seeks to create 1,500 direct jobs and over 2,000 indirect jobs.

With an annual production capacity of 30,000 tons, 85% of the production will be exported to international markets.

Sondiale SA, which is an affiliate of GreenPower Morocco, secured $4.75 million from the US International Development Finance Corp, Bloomberg detailed.

“A US primary contractor will develop the facility to provide high-purity polysilicon to the US and allied nations,” the report added, quoting an official from the development finance corp.

This comes as the US seeks to diversify suppliers, with reports acknowledging China’s leadership in producing over 90% of polysilicon at a global scale.

Bloomberg also quoted Sondiale’s executive director, who emphasized that markets targeted will also include the EU, Japan, South Korea, and Malaysia, among others.

“Morocco’s partners want to diversify the global supply chain,” Tayeb Amegroud said.

The North African country has been strengthening its position in renewable energy, with the goal of producing 52% of electricity from solar sources by 2030.

Renewable resources in Morocco now contribute over 45% to Morocco’s electricity and grid.