1
Company Confidential
Copyright © 2010 AMG
AMG Advanced Metallurgical
Group N.V.
Status of Solar Grade Silicon Industry
John R. Easoz
2010 China International Silicon Conference &
Photovoltaic Industrial Development Forum
Xuzhou, September 16, 2010
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Company Confidential
Copyright © 2010 AMG
THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG ADVANCED
METALLURGICAL GROUP N.V. (THE “COMPANY”) AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY
OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THIS RESTRICTION MAY
CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS.
This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of
the Company or any of its subsidiaries nor should it or any part of it, nor the fact of its distribution, form the basis of, or be relied on in connection with, any contract or
commitment whatsoever.
This presentation has been prepared by, and is the sole responsibility of, the Company. This document, any presentation made in conjunction herewith and any
accompanying materials are for information only and are not a prospectus, offering circular or admission document. This presentation does not form a part of, and
should not be construed as, an offer, invitation or solicitation to subscribe for or purchase, or dispose of any of the securities of the companies mentioned in this
presentation. These materials do not constitute an offer of securities for sale in the United States or an invitation or an offer to the public or form of application to
subscribe for securities. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment
whatsoever. The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy or completeness of the information or the opinions contained herein. The Company and its advisors are under no
obligation to update or keep current the information contained in this presentation. To the extent allowed by law, none of the Company or its affiliates, advisors or
representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise
arising in connection with the presentation.
Certain statements in this presentation constitute forward-looking statements, including statements regarding the Company's financial position, business strategy, plans
and objectives of management for future operations. These statements, which contain the words "believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,”
“project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of the management board of directors of the Company and are subject to
risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the achievement of the anticipated
levels of profitability, growth, cost and synergy of the Company’s recent acquisitions, the timely development and acceptance of new products, the impact of competitive
pricing, the ability to obtain necessary regulatory approvals, and the impact of general business and global economic conditions. These and other factors could adversely
affect the outcome and financial effects of the plans and events described herein.
Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the
forward-looking statements contained in this presentation.
The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.
This document has not been approved by any competent regulatory or supervisory authority.
Disclaimer
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Company Confidential
Copyright © 2010 AMG
Agenda
Introduction
AMG Advanced Metallurgical Group
AMG Conversion
Solar grade silicon
Introduction
Silicon purification techniques
Manufacturing processes (Elkem, 6N Silicon, Timminco)
Impact of impurities
Quality improvements
Ingot yield
Cell efficiency
Inclusions
Breakdown voltage
Light-induced degradation
Manufacturing costs & electricity consumption
Conclusions
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Company Confidential
Copyright © 2010 AMG
Introduction
AMG Advanced Metallurgical Group
AMG Conversion
Solar grade silicon
Introduction
Silicon purification techniques
Manufacturing processes (Elkem, 6N Silicon, Timminco)
Impact of impurities
Quality improvements
Ingot yield
Cell efficiency
Inclusions
Breakdown voltage
Light-induced degradation
Manufacturing costs & electricity consumption
Conclusions
5
Company Confidential
Copyright © 2010 AMG
Listed on NYSE-Euronext Amsterdam (Euronext: AMG)
2009E revenue of $0.9 billion (2008 revenue of $1.3 billion)
Products
High purity metals and complex metal products
Vacuum furnaces used to produce high purity metals
Global presence
Europe
Germany, UK, France, Norway
Americas
US, Canada, Mexico, Brazil
Asia
China, Japan
2,500 employees
Technology-driven specialty metals company
AMG
Engineering
Systems
Advanced
Materials
Graphit Kropfmühl
(GKR.DE)
Timminco Ltd.
(TIM.TO)
42.5%
79.5%
100.0% 100.0%
Publicly Traded
Investments
Silicon Metal
Graphite
Silicon Metal
Solar Grade Silicon
Vacuum Furnaces
Titanium
Nuclear
Solar
Superalloys
Specialty Steel
Heat Treatment
Vanadium &
Titanium
Tantalum &
Lithium
Aluminium
Chrome
Antimony
Coatings
Other
Introduction to AMG
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Company Confidential
Copyright © 2010 AMG
AMG provides specialty metals and capital equipment to growing end markets
Introduction to AMG (cont’d)
AMG Materials
High value alloys
Essential raw materials
AMG Engineering
Capital equipment for high- performance
materials
Wayne, PA headquarters
11 plants in 7 countries
4 mines in 4 countries
1,587 employees
Hanau, Germany headquarters
8 facilities in 5 countries
684 employees
Advanced Materials Engineering Systems
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Company Confidential
Copyright © 2010 AMG
AMG Solar Activities
Company Product Solar Use AMG
Ownership
Timminco Silicon metal1Raw material for polysilicon, solar
grade silicon42.5%
Timminco Solar grade silicon Raw material for silicon ingots 42.5%
Graphit Kropfmühl Silicon metalRaw material for polysilicon, solar
grade silicon80.5%
ALD Vacuum Technologies DSS furnacesEquipment to produce silicon
ingots100%
AMG Conversion (Ohio)200 kW photovoltaic system
(under construction)Generation of electricity 100%
GfEZinc oxide /aluminum oxide
sputtering targets
Raw material for transparent
conductive oxide layers for thin film100%
AMG ConversionSolar grade silicon ingots,
bricks, wafers
Raw material for silicon bricks,
wafers, cells100%
Timminco solar grade
silicon chunks
AMG Conversion 200 kW PV
System (Ohio)
ALD DSS (SCU400plus) GfE AZOY® rotatable
target
GK silicon metal chunks
1 On August 10, 2010, Timminco announced that it had agreed to form a joint venture with Dow Corning at its silicon metal production facilities in
Bécancour, Québec. Dow Corning will acquire a 49% equity interest in the joint venture that will own Timminco’s existing silicon metal operations.
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Company Confidential
Copyright © 2010 AMG
Introduction to AMG Conversion
Metallurgical
Silicon
Solar Grade
SiliconIngots Bricks Wafers
Cells &
Modules
AMG Conversion produces multicrystalline silicon ingots, bricks, and wafers for the
solar industry
AMG Conversion’s goal is to accelerate the development of solar grade silicon to enable
customers to manufacture solar cells using solar grade silicon that are indistinguishable from
those made with polysilicon
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Company Confidential
Copyright © 2010 AMG
AMG Conversion – Products
Ingots Bricks Wafers
835 x 835 x 250 ±5 mm
400 ±10 kg
156 x 156 ±0.5 mm
200 ±20 μm
157 x 157 ±0.5 mm
Height based on customers
specifications
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Company Confidential
Copyright © 2010 AMG
Introduction
AMG Advanced Metallurgical Group
AMG Conversion
Solar grade silicon
Introduction
Silicon purification techniques
Manufacturing processes (Elkem, 6N Silicon, Timminco)
Impact of impurities
Quality improvements
Ingot yield
Cell efficiency
Inclusions
Breakdown voltage
Light-induced degradation
Manufacturing costs & electricity consumption
Conclusions
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Company Confidential
Copyright © 2010 AMG
Silicon & Impurity Contents
Silicon Product Category
Semiconductor Grade
Solar Grade (SoG Si) /
Upgraded Metallurgical Grade (UMG Si)
High Purity Grade
Metallurgical Grade (MG Si)
ppmw 104
102
1 10-2
10-4
Impurity Content
High investment costs
Long construction lead times
High electricity consumption
Well-known material and manufacturing processes
Low impurities lead to high ingot yields and high cell
efficiencies
Prices can be very volatile
Low investment costs (1/10th to 1/5th of poly)
Shorter construction lead times (1/4th to 1/3rd of poly)
Low electricity consumption (1/4th to 1/2 of poly)
New material not yet fully adopted by market
Higher impurities, yet cell efficiencies >16% can be
achieved
Semiconductor Grade Silicon Solar Grade Silicon
Based on information gathered on PV industry…
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Company Confidential
Copyright © 2010 AMG
Silicon Production & Purification
Metallurgical
Silicon
Trichlorosilane
HSiCl3(TCS)
Silane
SiH4
Various Processes:
Slag Treatment, Leaching,
Oxidation, Casting
Chemical Vapor
Deposition
(CVD)
Fluidized Bed
Deposition
(FBD)
Polysilicon
Polysilicon
Solar Grade
Silicon
Traditional /
Siemens
Fluidized
Bed
Metallurgical
Refining
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Company Confidential
Copyright © 2010 AMG
Solar Grade Silicon Purification Techniques
Acid Leaching
Treating of metallurgical grade silicon with acids (HF,
HCl) to dissolve metal clusters
Effective on metals but not on dopants (boron and
phosphorus)
Directional Solidification
Segregate impurities in the melt during crystallization
based on segregation coefficients
Impurities accumulate at the top of the ingot thus
purifying the bottom
Calcium Leaching or “Slagging”
Addition of calcium to silicon to bind and separate
impurities in the slag
The slag phase can be separated from the “clean” molten
silicon phase
Oxidation
Melt metallurgical grade silicon at high temperatures to
separate impurities in the slag or as gases
Effective with boron removal
Reduction of High Purity Silica by High
Purity Carbon
Similar process used for standard metallurgical grade
silicon in arc furnaces
Requires clean silica (naturally clean or purified by
leaching), high purity carbon, purified electrodes
Gas Blowing Through Melt
Blow gases (O2, Cl2, CO2) through the melt to react with
dissolved impurities
Volatile compounds are formed and removed from the
melt
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Company Confidential
Copyright © 2010 AMG
Selected Solar Grade Silicon Manufacturing Processes
Metallurgical
Silicon
Slag
TreatmentLeaching
Solidification/
Segregation
Post
Treatment
Metallurgical
SiliconDissolution Crystallization Washing Growing
Al/Si Melt Water + Acid Gas
Metallurgical
Silicon
Oxidation in
Rotary
Furnace
Solidification
with
Electromagnetic
Stirring
Cleaning
In-house 3 sequential purification steps to reduce impurities Ingot cleaned/sawed
In-house 3x oxidation/solidification sequence
Filtration
Sources:
- Elkem Solar: Status and future outlook, 6th Solar Silicon Conference, Munich, 2008
- 6N Silicon: Solar Silicon in a Dynamic Market!, 7th Solar Silicon Conference, Munich, 2009
- Timminco: Public presentations, 2009-2010
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Company Confidential
Copyright © 2010 AMG
Impurities in Silicon
Category Example Impact
Dopants Boron,
Phosphorus,
Gallium
Resistivity
Important to have n, p dopants well controlled to maximize ingot resistivity
yield (net carrier concentration determines resistivity)
Light-induced degradation
Need to minimize boron
No detrimental effects on LID or lifetime due to gallium
Metals Iron, Copper,
Nickel,
Aluminum
Metallic impurities can limit cell efficiency by recombination
Bulk metal concentration inversely proportional to minority carrier lifetime
High metal impurities can decrease breakdown voltage and ohmic shunting
High iron concentrations can contribute to LID
Alkali-Metals Lithium,
Sodium,
Potassium
Corrosion of crucibles during crystallization
Crucibles integrity becomes compromised – can lead to run outs
Primarily problem with slag treatments where AM > 10 ppmw
Other Carbon,
Oxygen,
Nitrogen
Inclusions
High carbon and nitrogen concentrations will lead to SiC/SiN inclusions
that will reduce yield because of non-waferability (can cause wire breaks)
Inclusions/precipitates can cause breakdown voltage issues and result in
module hot spots during shaded conditions
Light-induced degradation
Need to minimize oxygen diffusion into melt during casting
Need to maximize oxygen removal through mixing during casting
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Company Confidential
Copyright © 2010 AMG
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
- 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
Resi
stiv
ity (
oh
m c
m)
B a
nd
P C
on
cen
trati
on
(p
pm
a)
Fraction Solid
B (ppma)
P (ppma)
Resistivity
B = 0.6 ppmw
P= 1.4 ppmw
84% yield
B = 0.6 ppmw
P= 1.8 ppmw
64% yield
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
- 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
Resi
stiv
ity (
oh
m c
m)
B a
nd
P C
on
cen
trati
on
(p
pm
a)
Fraction Solid
B (ppma)
P (ppma)
Resistivity
→ Decreasing phosphorus from 1.8 to 1.4 ppmw increased yield from 64% to 84%
→ Average resistivity decreased
Impact of Dopant Concentration/Compensation1
64% 84%
1 Theoretical example for illustration purposes
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Company Confidential
Copyright © 2010 AMG
Introduction
AMG Advanced Metallurgical Group
AMG Conversion
Solar grade silicon
Introduction
Silicon purification techniques
Manufacturing processes (Elkem, 6N Silicon, Timminco)
Impact of impurities
Quality improvements
Ingot yield
Cell efficiency
Inclusions
Breakdown voltage
Light-induced degradation
Manufacturing costs & electricity consumption
Conclusions
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Company Confidential
Copyright © 2010 AMG
Areas of focus for quality improvements with SoG Si / UMG:
1. Ingot yield (p-type resistivity and lifetime)
2. Cell efficiency
3. Inclusions
4. Breakdown voltage (cells)
5. Light-induced degradation (cells)
Understanding of downstream processing in the rush to market the material in times
of high polysilicon prices
In 2009 and 2010, polysilicon prices returned to “normal” levels and SoG Si demand
crashed
→ Forced SoG Si manufacturers to focus on more clearly defining customer
specifications and quality parameters
→ Significant quality improvements have been made to date
Quality Improvements
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Company Confidential
Copyright © 2010 AMG
Focus Area #1: Ingot Yield
Proper management of dopant levels in starting material, use of secondary dopant (i.e.
gallium), and optimized crystallization methods can be used to maximize ingot yield
Typical ingot yield with polysilicon is 85% for 400 kg ingots
AMG Conversion has achieved yields above 80% with 100% SoG Si
1 Ingot yield is defined as waferable ingot height (based on resistivity and lifetime) / original ingot height
Goal: Obtain SoG Si ingot yield1 comparable to that of ingot made with
polysilicon
0.5
8
0.6
0
1.75
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Resi
stiv
ity (
Ω-c
m)
0.6
Ω-c
m
1.8
Ω-c
m
Bott
om
cut
To
pcu
t
0.8
5
0.8
7 1.06
1.10
1.2
1.2
2.4
2.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
B &
P (
pp
mw
)
Solidified fraction
BoronPhosphorus0.6 ohm-cm
0.6
Ω-c
m
1.8
Ω-c
m
Bo
tto
mcu
t
To
pcu
t
0.8
5
0.8
7 1.06
1.10
1.2
1.2
2.4
2.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
B &
P (
pp
mw
)
Solidified fraction
BoronPhosphorus0.6 ohm-cm
0.6
Ω-c
m
1.8
Ω-c
m
Bo
tto
mcu
t
Top
cut
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Company Confidential
Copyright © 2010 AMG
Focus Area #2: Cell Efficiency
Several cell process modifications have been explored to improve efficiency
Phosphorus gettering (during standard diffusion) remains the most effective
With extended gettering processes, cell efficiencies comparable to those made with
polysilicon with identical processes
Extended diffusion can be performed in standard cell lines with minimal impact on cost
AMG Conversion has achieved cell efficiencies over 16% using 100% SoG Si from
Timminco, comparable with polysilicon cell efficiency performance in the same cell
lines
Goal: Produce SoG Si cells with cell efficiency comparable to that of cells
made with polysilicon
15.9%16.1%
Standard
Gettering
Average cell
efficiency at AMG
Conversion1
Extended
Gettering1 Cells made at International Solar Energy Research
Center Konstanz (ISC) from AMG Conversion wafers
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Company Confidential
Copyright © 2010 AMG
Focus Area #3: Inclusions
High concentrations of C and N in the feedstock can lead to the formation of SiC and SiN inclusions
Inclusions cause electrical breakdown and losses in slicing due to wire breaks/saw marks
SoG Si manufacturers must either reduce carbon in their source material, or remove contaminants
with methods such as oxidation, or filtration
Filtration techniques have been utilized to reduce carbon impurities
Casting techniques to improve impurity segregation, and vacuum removal during ingot crystallization are
very effective
AMG Conversion has successfully achieved inclusion free ingots using 100% SoG Si,
resulting in slicing yields comparable to those obtained with polysilicon feedstock
Goal: Produce SoG Si ingots with inclusion concentration comparable to
that of ingots made with polysilicon
IR image of
brick showing
a high number
of inclusions
IR image of
brick showing
no inclusions
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Company Confidential
Copyright © 2010 AMG
Focus Area #4: Breakdown Voltage
As ingot yield and resistivity are tradeoffs with SoG Si material, users tended to push
resistivity to lower levels <0.5 ohm-cm to increase yield
While reasonable cell efficiencies were obtained, breakdown voltage issues arose due to
higher impurity concentrations in the base material.
Module/cell producers compensated for the breakdown voltage problem by adding diodes
to modules to prevent overheating in partially shaded conditions.
Goal: Produce SoG Si cells with breakdown voltage comparable to that of
cells made with polysilicon
AMG Conversion can reduce metallic
impurities, SiC precipitates, and net dopant
concentration and achieve acceptable
breakdown characteristics, while
maintaining high ingot yield
No module design changes should be
required-16
-14
-12
-10
-8
-6
-4
-2
0
-20 -18 -16 -14 -12 -10 -8 -6 -4 -2 0
Rev
erse
Cu
rren
t [A
]
Reverse voltage [V]
wafer no 082
wafer no 110
wafer no 116
wafer no 128
wafer no 132
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Company Confidential
Copyright © 2010 AMG
Focus Area #5: Light-Induced Degradation (LID)
LID is roughly proportional to [boron] and [oxygen]2
LID can be improved by:
Reducing boron and oxygen contents in feedstock
Limiting oxygen diffusion in melt during casting
Using a proper casting technique to remove oxygen during crystallization
LID in multicrystalline polysilicon wafers vary from 0.1 to 0.4% relative
LID in monocrystalline polysilicon wafers typically 0.5 to 0.6% relative
AMG Conversion can achieve LID of 0.2-0.3% relative, comparable to multi poly
Goal: Produce SoG Si cells with LID comparable to that of cells made with
polysilicon
0.8-1.8%
0.5-0.8%
0.2-0.3%
3Q 2009
Feedstock
Purity
Casting
Technique
LID improvements
at AMG Conversion
1Q 2010 2Q 2010
0.1-0.4%
0.5-0.6%
Multi Mono
Source: Management
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Company Confidential
Copyright © 2010 AMG
Introduction
AMG Advanced Metallurgical Group
AMG Conversion
Solar grade silicon
Introduction
Silicon purification techniques
Manufacturing processes (Elkem, 6N Silicon, Timminco)
Impact of impurities
Quality improvements
Ingot yield
Cell efficiency
Inclusions
Breakdown voltage
Light-induced degradation
Manufacturing costs & electricity consumption
Conclusions
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Company Confidential
Copyright © 2010 AMG
Polysilicon production costs using Siemens process vary with:
Manufacturer experience
Equipment quality
Process quality
SoG Si production costs vary with:
Process types
Impurity levels
→ SoG Si typically holds a cost advantage…
…but only if the material can produce cells of equivalent quality!
→ Most customers will require an economic incentive to adopt a new product
Manufacturing Costs
$80
$60
$40
$20
$0
Polysilicon SoG Si
Indicative
Industry
Manufacturing
Costs1
($/kg)
1 Based on Management’s knowledge of the industry participants. Manufacturing costs can vary widely based on capacity utilization and yields.
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Company Confidential
Copyright © 2010 AMG
Electricity Consumption
200-250
110-130
40-70
Indicative
Electricity
Consumption1
(kWh/kg)
Polysilicon“Low Yield”
Polysilicon“Best in Class”
SoG Si
In March 2010, the Chinese government announced (No. 38, State Council):
Steel, cement, glass, chemical, and polysilicon industries are suffering from overcapacity
and must reduce energy consumption
New polysilicon projects with less than 3,000 mt annual capacity have been targeted
New energy consumption standard of less than 200 kWh/kg (for comprehensive energy
consumption) and 60 kWh/kg (for reduction process) to be issued by end of 2010
The new standard would eliminate many small inefficient polysilicon plants
1 Based on Management’s knowledge of the industry participants. Electricity consumption can vary widely based on yields.
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Company Confidential
Copyright © 2010 AMG
InclusionsInclusions
Potential Partnerships in China
AMG Conversion is looking for partners to:
Provide wafer tolling services
Establish cell production capability by testing and development of cost effective
processes for cell and modules made with SoG Si
Develop alternative crystallization techniques to further improve material performance
Develop customer relationships for high efficiency/low cost cell products
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Company Confidential
Copyright © 2010 AMG
Introduction
AMG Advanced Metallurgical Group
AMG Conversion
Solar grade silicon
Introduction
Silicon purification techniques
Manufacturing processes (Elkem, 6N Silicon, Timminco)
Impact of impurities
Quality improvements
Ingot yield
Cell efficiency
Inclusions
Breakdown voltage
Light-induced degradation
Manufacturing costs & electricity consumption
Conclusions
29
Company Confidential
Copyright © 2010 AMG
Conclusions
SoG Si manufacturers have made several improvements to address customer concerns
Today’s best SoG Si has the following characteristics:
Low boron and phosphorus concentrations in the proper ratios to produce high ingot
resistivity yields
Carbon contents low enough to eliminate inclusion formation and have no negative
impact on cell breakdown voltage or slicing yield
Oxygen contents low enough to not cause atypical LID
Metals contents low enough to not cause lifetime/cell efficiency/breakdown issues
While some companies are making good progress, quality differs widely among producers
Market acceptance is possible, but remains an issue due to historical perspectives
Continued cost reduction and quality improvement is necessary to drive market penetration
→ Low-cost and high quality SoG Si is an attractive alternative to polysilicon even
under current poly pricing conditions
→ In the event of higher material silicon demand, SoG Si will continue to drive lower
cost photovoltaics
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Company Confidential
Copyright © 2010 AMG
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