According to Roskill, the demand for solar grade polysilicon has tripled in the silicon industry. It is expected that the amount utilized in solar photovoltaic (PV) modules will begin to rival that in the high volume silicon markets within the next few years. High value solar grade silicon also allows significantly higher profit margins than the bulk markets. World production of silicon metal improved from approximately 1.1Mt in 2001 to 1.76Mt in 2010, mainly due to increasing Chinese output.
In 2010, silicon metal was produced in fifteen countries, and Chinese production accounted for approximately 46% of the world total. World production of ferrosilicon in 31 countries totalled about 7.1Mt in 2010, an increase from 6.1Mt in 2009. The main markets for silicon metal in 2010 were as an alloying element with aluminium (45%), in silicone and silane chemicals (35%) and PV (12%). The market for ferrosilicon is mainly in steel (85%) and cast iron (15%), with very limited amounts used in non-ferrous alloys, dense media and other applications.
In 2010, solar photovoltaics were generating electricity in over 100 countries, the fastest growing power-generation technology in the world. As the costs of producing solar grade silicon and generating solar energy decrease, the demand for silicon will increase. Despite the increase in demand for silicon in solar energy, there is an expectation that the largest end-uses for silicon metal and ferrosilicon will continue to be aluminium and steel. The demand for ferrosilicon in steel will be determined by rising steel production in budding markets, particularly in the BRIC countries.
