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.
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.
In a Reuters report, Ryul 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 Ryul, 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.
SpaceX outlines IPO strategy with strong retail focus
SpaceX has begun laying out plans for what could become the largest initial public offering (IPO) in history, with a notable emphasis on retail investor participation.
During a virtual meeting held on Monday night with its full syndicate of bankers, the company indicated that individual investors would play an unusually significant role in the offering.
SpaceX is expected to reserve a substantially larger share of the IPO allocation for retail investors compared to typical offerings.
While most IPOs usually allocate between 5% and 10% of shares to individual participants, Musk has previously indicated that as much as 30% could be set aside for smaller investors.
The company is planning to formally launch its IPO roadshow during the week of June 8.
In the lead-up to the event, around 125 analysts from 21 participating banks are scheduled to meet with company executives.
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