Hoku Materials announced that it has signed a supply contract with Polymet Alloys for silicon  metal to be converted into polysilicon for the solar market. The 3-year contract states that Polymet will supply Hoku with specified amounts of silicon each year starting in 2009. This guarantees that Hoku will have enough silicon for the start-up of its plant. If necessary, both parties can agree to expand the contract after the first year.

Dustin Shindo, Hoku’s chairman and CEO, commented on the deal:

Hoku is pleased to have established this partnership with Polymet Alloys, Inc. and Rima Industrial S.A., leaders in the silicon metal industry. Silicon metal is a key raw material for Siemens-based production of polysilicon, and another important way for Hoku to manage our production costs. The fixed rates negotiated under this agreement are fair and fit well within our projected financial models for our operations."

"Rima prides itself on being the major producer of Green Silicon Metal in the world using clean hydropower and sustainably managed timber from its own eucalyptus plantations," said Braulio Lage, Vice President of Polymet Alloys, Inc. "We feel there is a natural alignment between Polymet/Rima and Hoku’s focus on renewable energy technology and are very pleased to have established a relationship with a key emerging player in the industry."