A Malaysian unit of South Korea’s OCI Holdings is in discussions with SpaceX to supply polysilicon under a potential long-term agreement, according to a South Korean Maeil Business Newspaper .
Multi-year supply deal under discussion
OCI TerraSus, the Malaysian arm of OCI Holdings, is engaged in talks with SpaceX over a multi-year contract for polysilicon supply .
The discussions indicate a potential strategic collaboration between the chemical manufacturer and the aerospace company.
However, neither party has officially confirmed the development.
SpaceX did not immediately respond to Reuters request for comment.
Meanwhile, a spokesperson for OCI Holdings said in a text message that he could not confirm the report.
Potential role of polysilicon in SpaceX operations
Polysilicon is a key raw material used in solar modules.
The material could play a role in powering SpaceX’s infrastructure, including data centres and satellites.
Cho Hyun-Ryul, an analyst at Samsung Securities, highlighted the potential rationale behind such a deal.
As reported by Reuters, Cho said, “There would likely be strong incentives to purchase non-Chinese polysilicon to qualify for the Inflation Reduction Act subsidies.”
He added that the polysilicon would likely be used in solar-module cells designed to support SpaceX’s energy needs.
These include powering satellite systems and data centres tied to its broader technological ambitions.
Alignment with US subsidy policies
The potential sourcing of non-Chinese polysilicon aligns with provisions under the Inflation Reduction Act in the United States.
As noted by Cho, companies may benefit from subsidies if they use materials sourced outside China.
This could make OCI TerraSus a viable partner for SpaceX, especially if the aerospace firm aims to maximise eligibility for such incentives.
The discussions also reflect a broader industry trend of diversifying supply chains amid geopolitical and regulatory considerations.
SpaceX’s broader satellite ambitions
The reported talks come as SpaceX continues to expand its long-term plans in space-based infrastructure.
In January, the company outlined its intention to launch a massive satellite network.
The plan involves deploying a constellation of up to 1 million satellites that would orbit Earth.
These satellites are expected to harness solar energy to power artificial intelligence data centres in space.
Such an initiative would significantly increase demand for solar-related materials, including polysilicon.
If finalised, a supply agreement with OCI TerraSus could support these ambitions by ensuring a stable and compliant source of key components.
No official confirmation yet
Despite the reported progress in discussions, both OCI Holdings and SpaceX have yet to confirm the potential deal.
The lack of official statements leaves uncertainty around the timeline and finalisation of any agreement.
Still, the report highlights growing intersections between renewable energy supply chains and advanced technology projects, particularly in the space and AI sectors.
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