Reliance Industries is divesting REC Solar Norway, the kerf-based polysilicon manufacturing subsidiary of REC Solar Holdings, to Elkem ASA, a silicon-based materials supplier listed on the Oslo Stock Exchange. The share purchase agreement, valued at $22 million, involves the transfer of Reliance Industries' entire equity stake in REC Solar Norway.

Upon the completion of this transaction, REC Solar Norway will no longer operate as a subsidiary of Reliance Industries. However, REC Solar Holdings AS, along with its subsidiaries dedicated to the manufacturing and sale of solar PV HJT cells and modules, will continue to remain under the umbrella of Reliance Industries.

REC Solar Norway, which closed its polysilicon production facilities in Kristiansand and Porsgrunn in November, is a wholly owned subsidiary of REC Solar Holdings AS. Despite the sale, Reliance Industries will retain the technology and intellectual property rights associated with kerf-based polysilicon.

REC CEO Jan Enno Bicker had previously stated that the challenges in producing high-purity silicon in Norway had led to the closure of polysilicon production operations.

In the fiscal year 2022, REC Norway reported a turnover of NOK 1.1 billion ($104.9 million). The completion of this transaction is contingent on meeting regulatory and customary closing conditions, with the expected finalisation slated for April 2024, as communicated by Reliance Industries.