In the context of the United States' efforts to reduce its reliance on China in vital supply chains for advanced technology, a Bloomberg report (December 8, 2025) revealed Washington's support for a strategic industrial project in Morocco aimed at producing high-purity polysilicon (polycrystalline silicon), used in the manufacture of electronic chips and solar panels. China controls more than 90% of global production and threatens to use it as leverage in trade disputes.
The project involves Sondiale SA, a subsidiary of GreenPower Morocco, which plans to build a new $870 million factory in Tan-Tan (southern Morocco). The factory will have an annual production capacity of 30,000 tons of polysilicon, representing about 1% of current global production, and is expected to open in late 2029. The company received initial funding of $4.75 million from the U.S. International Development Finance Corporation (DFC) to support the preparation, planning, and technical studies phases, with the potential for additional support of up to $550 million from the DFC, in addition to $100 million from the Moroccan government as a strategic investment. Tayeb Amgrod, the company's CEO, explained in statements reported by Business Insider that the project aims to raise a total of $800 million through financing agreements and loans with local and international investors. He emphasized that "Morocco's partners want to diversify the global supply chain," amid Western concerns about Beijing's control over strategic materials such as rare earth minerals, on which China announced new restrictions this year in response to US tariffs.
Tan-Tan: The Gateway to African Silicon... 90% Renewable Energy and Exports to Europe and Asia
The factory will be built in the "Al-Watiya" industrial zone in Tan-Tan, on the Atlantic coast. It will utilize "energy-intensive" technology to produce silicon wafers, with plans to operate on 90% renewable energy (wind and solar) through agreements with local stakeholders, while the remaining 10% will come from the national grid. This strategy aims to reduce the carbon footprint and enhance Morocco's image as a sustainable industrial hub. Targeted export markets will not be limited to the United States, but will also include the European Union, Japan, South Korea, Singapore, and Malaysia, with 85% of production destined for export. This positions Morocco as a regional hub for advanced materials, leveraging its free trade agreements with the US and the EU to attract investment and create jobs, particularly given youth unemployment, which reached 35% in 2025.
The US Context: Breaking China's Monopoly and Diversifying Supply
US support is part of Washington's strategy to diversify supply chains away from China, which produces more than 90% of the world's polysilicon. The US announced new restrictions on rare earth metals this year in response to trade tariffs. A DFC official confirmed that the project "provides high-purity silicon to the United States and its allies," thus enhancing economic security in the semiconductor sector (such as Intel and Taiwanese companies) and the solar energy sector, where silicon is used in 95% of global solar panels.
In the Moroccan context, the project represents part of a broader strategy to leverage free trade agreements with the United States (2004) and the European Union (2000) to attract foreign investment and create jobs for young people in the south (1,500 direct jobs and 2,000 indirect jobs), given that youth unemployment reaches 35%, according to a World Bank report (2025). The investment agreement was signed in November 2025, and the project was classified as "strategic" by the National Investment Commission in February 2024, reinforcing Morocco's position as an industrial hub for advanced materials, linked to renewable energy and technology industries.
In conclusion, the Sondiale project is a giant leap towards economic diversification, transforming Tan-Tan—a southern border city—into a regional silicon hub, contributing to a 90% reduction in its carbon footprint and boosting exports to global markets amidst international competition for strategic raw materials. With the deadline for submitting bids closing in July 2026, the world is watching to see how Morocco will establish itself as a "link" between Africa and Europe in the world of clean energy and technology.
