Reliance Industries is selling REC Solar Norway to Elkem ASA, an Oslo-listed silicon-based materials supplier.

Reliance Industries’ subsidiary, REC Solar Holdings, has signed a share purchase agreement with Elkem ASA for the sale of its 100% equity stake in REC Solar Norway AS (REC Norway) for $22 million.

Upon completion of the sale, REC Solar Norway will cease to be a subsidiary of the company. REC Solar Holdings AS and its subsidiaries, engaged in the business of manufacturing and sale of solar PV HJT cells and modules, will continue to be Reliance Industries' subsidiaries.

REC Solar Norway, a wholly owned subsidiary of REC Solar Holdings AS, manufactures kerf-based polysilicon in its home country. In November, it closed its polysilicon production operations in Kristiansand and Porsgrunn.

“We have reached the point where it is unfortunately not possible to make the production of high-purity silicon in Norway viable,” REC CEO Jan Enno Bicker said at the time.

Reliance Industries said it will retain the technology and intellectual property rights for kerf-based polysilicon.

REC Norway had a turnover of NOK 1.1 billion ($104.9 million) in fiscal 2022.

“The above transaction is subject to certain regulatory and other customary closing conditions and is expected to be completed by April 2024,” said Reliance Industries.