The future of metallic silicon in the green economy: navigating new regulations and market dynamics

As the world moves towards a more sustainable future, the metal silicon industry is about to face major changes, especially the EU Carbon Border Adjustment Tax (CBAM) which will be implemented in 2026. This regulation aims to create a level playing field for European companies by imposing tariffs based on the carbon emissions of imported goods. As a result, companies are forced to accelerate the transition to green electricity, which will have a profound impact on the production and export of metal silicon.

The share of production capacity in hydropower-rich regions such as Yunnan and Sichuan in China is expected to rise to 30%. This shift is not only a response to strict EU regulations, but also a strategic move to enhance competitiveness in a market that is increasingly focused on sustainability. For companies that want to maintain market share in Europe and other regions, the ability to produce metal silicon using renewable energy will become a key competitive advantage.

However, the situation is further complicated by the US tariff policy, which has disrupted the macro demand for industrial silicon. Exports have fallen year-on-year, and the Southeast Asian market has become an important relocation point for companies seeking to ease the impact of tariffs. This shift highlights the need for the metal silicon industry to adapt as companies must deal with regulatory pressures and changing market dynamics.

In summary, the future of metal silicon is closely tied to the global push for sustainable development. As regulations such as the CBAM come into effect, companies must innovate and invest in green technologies to remain competitive. The interaction between regional production capabilities and international trade policies will shape the trajectory of the industry in the coming years, so stakeholders must remain informed and agile.