On May 16th, Reliance Industries Limited (RIL) announced the completion of the sale of its subsidiary REC Solar Norway AS to Norwegian listed company Elkem ASA for approximately $22 million.

In October 2021, RIL had acquired 100% of REC Solar Holdings for $771 million from China National Bluestar Group. REC Solar Norway, a wholly-owned subsidiary of REC Solar, operated the polysilicon business in Norway, but its performance had been unsatisfactory in recent years.

With high electricity prices and intense competition in the polysilicon market, REC Solar had repeatedly shut down and restarted the plant, ultimately deciding to close it permanently in November 2023 and sell the asset.

The sale agreement with Elkem was finalized on January 14, 2024, involving the transfer of 100% of REC Solar Norway's shares to Elkem for $22 million.

Interestingly, the seller Bluestar Group is the parent company of the buyer Elkem. In 2014, Bluestar had acquired REC Solar to avoid trade disputes with the US and Europe, and later merged it with Elkem. Now, after Reliance's acquisition of REC Solar in 2021, a portion of the assets has been sold back to the original parent company.

Despite this divestment, Reliance continues to hold the key assets and business of REC Solar Holdings, focusing on the manufacturing and sale of solar PV HJT cells and modules.