FERROGLOBE: Pioneering the Future of Silicon Manufacturing

The global demand for high-purity silicon metal and alloys is at an all-time high, driven by industries ranging from renewable energy and electric vehicles (EVs) to construction and semiconductors. At the forefront of this essential sector is Ferroglobe, one of the world’s leading producers of silicon metal, silicon-based alloys, and manganese-based alloys. The company has built a strong, diversified portfolio, supplying industries that underpin technological advancement and economic growth.

Over the past year, Ferroglobe has achieved a series of financial, operational, and strategic milestones that reinforce its position as a leader in the sector. The company has posted strong financial results, signed a Memorandum of Understanding (MoU) with Coreshell to revolutionise battery-ready silicon, entered into a long-term supply agreement with solar giant LONGi, and completed the acquisition of a high-purity quartz mine in the U.S.—all of which align with its broader vision for sustainable growth and innovation.

In 2023, CEO Marco Levi told Energy Focus that the business was making good progress as it rolled out a new strategy.

STRONG FINANCIAL PERFORMANCE

Ferroglobe delivered a strong financial performance in 2024, marking another successful year of operational execution and strategic progress. The company reported adjusted EBITDA of $153.8 million, generated strong free cash flow of $164.1 million, and reduced its debt burden as part of an ongoing sustainability strategy—all while laying the foundation for future growth initiatives.

Marco Levi commented on the results: “2024 was a successful year for Ferroglobe with many accomplishments. We achieved an adjusted EBITDA per our guidance and generated strong free cash flow, which was used to repay our senior secured notes. This strong free cash flow and balance sheet enabled us to initiate the capital return program, including dividends and share repurchases, while positioning the company for growth.”

Despite market uncertainties, Ferroglobe is optimistic about the future. The company has been actively working with trade regulators to ensure fair competition in its key markets. Levi highlighted the progress made in securing trade measures against unfairly priced imports: “Material progress has been made in implementing trade measures with the US Department of Commerce, imposing strong final anti-dumping and countervailing duties on Russian ferrosilicon imports while continuing to investigate the cases against Brazil, Kazakhstan, and Malaysia. The European Commission initiated its safeguard investigation into the imports of silicon metals, silicon alloys, and manganese alloys into the EU. Ferroglobe, being a local producer in both the US and Europe, will be a beneficiary of these trade measures as they will reduce artificially low-priced competitive products in the market, helping the market to stabilise.”

Looking ahead, Ferroglobe has issued adjusted EBITDA guidance for 2025 in the range of $100 million to $170 million, acknowledging the uncertainties posed by global trade policies and geopolitical factors. “The wide variance in our guidance reflects uncertainties related to trade measures, market conditions, and geopolitical factors,” Levi said.

With a strong balance sheet, proactive trade strategies, and a clear growth roadmap, Ferroglobe is well-positioned to capitalise on market opportunities in 2025 and beyond.

GAME-CHANGING MOU

In a move that could revolutionise battery technology, Ferroglobe signed a Memorandum of Understanding (MoU) with Coreshell, a California-based battery technology innovator in Q1 2024. The agreement will accelerate the development of battery-grade metallurgical silicon, a critical component for next-generation EV batteries.

The partnership aims to solve a long-standing challenge in the battery industry: unlocking the full potential of silicon anodes. Silicon has 10 times the energy storage capacity of graphite, making it a superior material for EV battery performance. However, until now, issues with material degradation and high production costs have hindered large-scale adoption. 

Benoist Ollivier, Chief Technology & Innovation Officer at Ferroglobe, expressed the company’s enthusiasm for the collaboration: “We believe battery-grade, micrometric silicon is the fastest path to decarbonising the mobility industry. When the right battery technology partner and the leading supplier of silicon to the U.S. come together, breakthroughs can happen. Coreshell is a leading technology company that has been able to solve the raw metallurgical silicon degradation problem and unlock the true performance of this element. We are thrilled to partner with the battery material innovators at Coreshell and play our part in accelerating the transition to clean energy in the automotive industry for everyone.”

For Coreshell, working with Ferroglobe provides a domestic and scalable source of silicon, solving a major bottleneck in the EV battery supply chain. CEO Jonathan Tan emphasised the significance of this breakthrough: “Silicon is available in sufficient quantity and quality. It is the only viable pathway to low-cost, long-range electric vehicle batteries that can be scaled rapidly using a 100% domestic supply chain. The issue to date is that no one has been able to unlock the power of metallurgical silicon, and the high cost and scaling challenges of highly engineered or silane-based synthetic silicon anodes have prevented the industry from benefiting from its true potential. With Ferroglobe’s silicon and Coreshell’s technology, we have unlocked that power. We are simplifying silicon and stripping out the costs so we can deliver the lowest-cost, long-range EV batteries in existence.”

This collaboration marks a significant milestone for both companies and the wider electric vehicle industry. By combining Ferroglobe’s expertise in silicon production with Coreshell’s cutting-edge battery technology, the partnership could pave the way for lower-cost, higher-performance EV batteries—accelerating the transition to cleaner, more sustainable mobility worldwide.

STRATEGIC PARTNERSHIP

Ferroglobe’s leadership in the solar energy sector was reinforced in 2024 with the signing of a long-term supply agreement with LONGi, the world’s largest manufacturer of high-efficiency solar wafers, cells, and modules.

Under the three-year agreement, Ferroglobe will supply LONGi with high-quality quartz and silicon metal, supporting the company’s strategic initiative to diversify its supply chain and secure high-purity raw materials from Western suppliers.

This partnership is a win-win for both companies. For LONGi, securing a stable supply of silicon metal is critical for maintaining its leadership in the fast-growing solar PV market. For Ferroglobe, the agreement reinforces its role as a key supplier to the global solar industry, ensuring stable demand and long-term revenue growth.

The deal also comes at a time when global solar capacity is expected to double by 2030, making Ferroglobe’s silicon supply a crucial component of the world’s renewable energy expansion.

“We are thrilled to announce our long-term partnership with Ferroglobe. LONGi is a global technology enterprise, and its supply chain is also developing towards globalisation. This strategic move will enable us to supply our trusted customers and partners with LONGi’s dependable, high-efficiency, and eco-friendly solar products worldwide,” said Tian Ye, Vice President, LONGi.

HIGH-PURITY ACQUISITION

In an important move to secure a dependable supply chain for quartz, Ferroglobe has announced the acquisition of a high-purity quartz mine in South Carolina, USA. This strategic acquisition enhances the company’s mining capacity by 50%, building on its existing operations in Alabama. The addition of this resource is a key step toward ensuring Ferroglobe has the materials required to meet the growing demand for solar energy and advanced batteries.

“The acquisition of the South Carolina property highlights our commitment to leveraging the strong growth expected from solar and advanced batteries in the coming years. Not only does this acquisition ensure that we have access to a dependable supply of high-purity quartz, eliminating the need for third-party suppliers in the U.S., it also expands our mining capacity over our current mining level in Alabama,” said Levi.

This move aligns with Ferroglobe’s focus on expanding its renewable energy and clean technology portfolio. The high-purity quartz mined at this site is used in the production of silicon metal, a key material in solar panels and electric vehicle batteries, both of which are experiencing significant growth globally.

With the South Carolina mine, Ferroglobe not only secures its supply chain but also enhances its domestic mining capabilities, reinforcing the company’s commitment to energy transition technologies and ensuring a stable supply of critical materials for its growing customer base in the U.S.

A LEADER FOR THE FUTURE

Ferroglobe’s impressive financial results, groundbreaking partnerships, and strategic acquisitions in 2024 underscore its status as a global industry leader. The company is not just producing high-quality silicon metal and alloys—it is actively shaping the future of renewable energy, electric vehicles, and advanced manufacturing.

As global demand for silicon-based materials continues to grow, Ferroglobe’s focus on sustainability, innovation, and strategic expansion will ensure that it remains a key player in the clean energy revolution. By securing long-term supply agreements, investing in critical raw materials, and partnering with leading innovators, Ferroglobe is positioning itself for sustained growth and industry leadership in the years ahead.