Ferroglobe PLC announced the acquisition of a strategic, high-purity quartz mine in South Carolina, U.S. The purchase price was approximately $11 million in cash with an additional $4 million expected in capital expenditures to build out the infrastructure, including rail access, loadout, and a processing facility. High-purity quartz is the key raw material in the supply chain and is required for the production of high-purity silicon metal, which is used in applications for solar and advanced battery technologies. These end markets are expected to experience dramatic growth in the coming years, driven by secular trends in the market.

In addition, the U.S. is making significant investments in its solar value chain and advanced battery technologies, evidenced by the Department of Energy's addition of silicon to its critical materials list. This acquisition helps ensure that Ferroglobe has access to this critical material, enabling it to meet the increasing demand for high-purity silicon metal. The South Carolina mine has the capacity to produce more than 300kt of high-purity quartz per year, with more than ten years of reserve life.

It is located near a rail line with a lower cost of production than Ferroglobe's existing quartz operations in Alabama. Production is expected to begin in the second half of 2024. The purchase of the mine is part of Ferroglobe's long-term strategy to be fully self-sufficient in quartz supply, a critical raw material in the production of silicon metal.

This transaction increases the company's global vertical integration in quartz supply, with the U.S. becoming fully backward integrated.