Soaring material costs, supply chain constraints, and intensified price competition are some of the reasons why LG Electronics Inc. will shutter its solar factory in Huntsville, Alabama, according to a company press release.
“The decision comes as uncertainties in the global solar panel business continue to increase due to a variety of contributing factors, including the intensification of price competition and the rising cost of raw materials,” LG said.
Soaring commodity prices have sent solar-grade polysilicon prices up more than 550% in the last two years. Polysilicon is a critical raw material in producing solar photovoltaic cells for panels.
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