Page 12 - AsiaElec Week 25 2021

AsiaElec RENEWABLES AsiaElec

Biden mulls ban on polysilicon

imported from China’s Xinjiang region

CHINA THE Biden administration appears to be closer Indeed in early May, Biden’s climate envoy
to banning imports of a raw material used John Kerry testified in Congress in response to
extensively in solar panels from China’s Xin- a question about forced labour and Biden’s cli-
jiang region because of allegations of forced mate solution. “It is a problem,” Kerry had said.
labour. This is according to a recent report citing He cited “solar panels that we believe in some
anonymous sources in the respected news outlet cases are being produced by forced labour.” He
Politico. The report was republished in the South also listed rare earth minerals, which can be used
China Morning Post. in magnets in large offshore wind turbines. Most
Politico cited four sources that it said were rare earth minerals are mined and processed in
familiar with the administration’s plans. China, much of it in Xinjiang.
The news is significant because approxi- China denies all human rights abuses.
mately 45% of the world’s polysilicon comes The ban could take the form of a ‘withhold
from Xinjiang, where China is accused of using release order’, which would allow US Customs
Uyghur Muslims for forced labour. Other parts and Border Protection to seize imports it believes
of China supply 35%, according to CNBC. One may be made with slave labour. The ban could be
fifth comes from US and elsewhere. region-wide or it could target specific factories or
Polysilicon is a key component in the photo- companies, said Politico.
voltaic (PV) cells used in most solar panels. A Apart from any ban because of forced labour,
ban could undermine Biden’s climate change the Biden administration is also weighing
goals, though it could give a leg up to US domes- whether to back tax credits that would boost
tic manufacturing, which has been battered by domestic solar panel makers, reports the Wall
cheap Chinese imports. Street Journal. Biden has called for a ‘made in
For some months, US lawmakers from both America’ energy transition.
major parties have pressed Biden to impose On June 21, the Solar Energy Manufacturing
import restrictions on polysilicon. Other prod- for America Act was introduced in the US Sen-
ucts such as tomatoes and cotton from the ate. It would establish a tax credit for domestic
region were previously banned under the Trump solar manufacturers, including a credit of $3/kg
administration. for polysilicon.™

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