Silicon in Saudi Arabia and its potential impact
Silicon is a key metal for the global energy transition and for Saudi Arabia’s economic diversification as part of Vision 2030. It is an essential component in the transition to a low-carbon green economy, is key to the solar photovoltaic sector, and has potential in other applications such as electric vehicle production and battery energy storage. It also has other important applications in sectors such as silicon and aluminum alloys.
The silicon metal market is highly concentrated, with China being the largest producer with approximately 80% of the market, followed by Norway. Brazil and the United States. However, there are opportunities for new players due to growing global, regional and local demand. In addition, factors such as the competitiveness of the cost structure, the availability of high quality quartz, or tariff barriers and other geopolitical factors may be other reasons to diversify production away from China.
We have been selected by the World Bank to carry out a strategic project in Saudi Arabia in cooperation with the National Industrial Development Center (NIDC). The main objective is to assess Saudi Arabia’s competitiveness in the silicon metal value chain, focusing on the refining and production phase.
The project will be developed in four stages:
- Global market and value chain analysis: Assessment of the current state of the global silicon market and its value chain.
- Saudi Arabia Competitive Landscape Report: Detailed analysis of Saudi Arabia’s position in the silicon market.
- Saudi Arabia Silicon Value Chain Report: Development of strategies and recommendations to improve the country’s competitiveness.
- Final Report and Stakeholder Capacity Building Workshop: Presentation of findings and recommendations, along with a workshop to train key stakeholders.
This project could help position the Saudi Arabian silicon value chain to meet growing local demand and regional/global opportunities, positioning the country as a competitive and attractive player for industrial investment. Special attention will be given to the analysis and benchmarking of the Saudi Arabian regulatory environment to ensure that the recommendations are feasible and sustainable.
