REC Silicon

Investor Presentation • Jul 29, 2024

Reshoring North American PV with Energy-Efficient, Low Carbon Footprint, High-Purity Granular Silicon

Wayne Osborne Silicon Gases Global Sales

Disclaimer

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for REC Silicon ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for REC Silicon ASA's businesses, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Although REC Silicon ASA believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. REC Silicon ASA makes no representations or warranties, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither REC Silicon ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

Information contained herein will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

REC Silicon ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

Agenda

• › About REC Silicon
• › Our Technology
• › Creating Solar Value
• › Reshoring American Solar Industry
• › Restart Status
• › Technology and Value Chain Development Challenges
• › Summary

ABOUT REC SILICON

4 © REC Silicon ASA. All rights reserved. Confidential.

A SILICON MATERIALS COMPANY PROVIDING ENABLING MATERIALS FOR THE GREEN ENERGY TRANSITION

Introduction

• › Combining 40 years' experience and best-in-class proprietary technology
• › Largest supplier of silane outside China, and largest silane module container fleet
• › Low-cost, low-carbon high-purity granular producer
• › Strong position with leading semi players
• › Immediate silane capacity available for silicon anode material

› Moses Lake

• ‒ Original Silane and FBR investment \$1.7B
• ‒ 24,000 MT silane gas capacity
• ‒ Prime high-purity granular polysilicon capacity 16,000 MT
  • ‒ Risk mitigating offtake contract
• ‒ ~ 2,400MT silane for merchant sales/battery producers
• ‒ Low energy low cost and conflict-free

› Butte

• ‒ 7,400 MT silane gas capacity
• ‒ Silicon gases
• ‒ Completed capacity expansion for DCS
• ‒ Ongoing loading/container expansion for high-value silicon gases

Notes: 1) Including Moses Lake at 100% of capacity, estimated Q4-24; 2) Figure shown for granular silicon, excluding fines and particulates; 3) On a global level ex. China; 4) By June 2024.

Our History

A Global Leader in Production of High-Quality Silicon Materials

Moses Lake Restarted Polysilicon Production in November 2023

• › Moses Lake to produce monograde polysilicon for US wafer industry
• › Expected to reach full production annual capacity of 16,000 MT high-purity polysilicon during Q4'24
• › FBR is a well-known technology through REC's long track record
• › REC Silicon has strong track record of cash cost reduction and operational improvements
• › Technology and upgrade process of the FBR-B is understood to REC Silicon, as similar facility upgrades were performed at the Yulin plant in 2019
• › The process has proven to consistently produce high purity granular polysilicon, and, additionally, has been verified by pilot processes and long-standing industrial applications

OUR TECHNOLOGY

10 © REC Silicon ASA. All rights reserved. Confidential.

Our Technology

SIGNATURE SILANE®

At the core of REC Silicon's technology is our molecule, SiH⁴ , and the safe, sustainable best practices to produce it.

REC Silicon FBR Development History

Fluidized Bed Reactor (FBR) Process

CREATING SOLAR VALUE

Low Cost, Low Carbon Footprint FBR

FBR vs Siemens Polysilicon Production

Polysilicon production methods			Comparison of methods
	Siemens method (Butte plant)	FBR method (Moses Lake plant)	FBR technology, due to its energy savings, has the lowest cost and one of the lowest carbon footprints in the industry
Product output	› High-purity product ideal for Float Zone (FZ) and Czochralski (CZ) polysilicon applications	› High-purity granular polysilicon for the solar industry	› Economy of scale, larger equipment › Higher production rate with less downtime, cleaning and maintenance activities › Stable quality and output with continuous quality monitoring rather than batch end › Improved flexibility and efficiency › Energy consumption is reduced comparative Siemens-silicon › Small form factor will be a larger part of mix › Elegant solution to chips Energy consumption per technology Polysilicon CVD1 Feed gas, utilities, recovery, waste treatment Siemens FBR Note: 1) Includes gas recirculation for FBR, heat recovery for Siemens
Raw materials (input)	› Silane gas › Hydrogen	› Silane gas › Hydrogen
Polysilicon process	› The process takes place in a large Siemens reactor, where silicon seed rods are heated, and the elemental silicon is deposited. The rods grow progressively larger in diameter as the process continues over time.	› Silane along with fluidization gases are introduced into a heated and fluidized bed of polysilicon particles where silicon is deposited onto the silicon particles that grow larger in diameter. These silicon particles are continuously withdrawn with seed particles continuously introduced into the reactor.
	Discontinuous process with significant post processing	Continuous process with low energy consumption

RESHORING AMERICAN SOLAR INDUSTRY

PV Silicon Markets

• › Solar demand forecast for 2024 over 500 GW
  • Total installations in China forecasted at 250 GW for 2024
  • Module inventory build will reduce demand in US for 2024
  • US companies file new AD/CVD case
• › Prices 2024
  • China prices now below cash cost for most producers
  • Outside China polysilicon prices gap increasing
  • Continue pricing pressure throughout supply chain
• › Polysilicon expansion
  • China is ~200% of the global market capacity for PV Grade Polysilicon
  • FBR is currently 18% of China capacity
  • China slowing down expansion plans but still increasing capacity

Silicon-Based Industries Facing Disruptive Changes

National Security – Energy, Defense, Communication

PV Market

• › 35% increase in expected installations in 2022-27 from the introduction of the IRA
• › USD 100 bn of investments already announced from companies in the US, Asia and Europe

• › Full impact throughout the US value chain

• › Limited existing value chain for PV in the US

• › Significant expansion is required, and announced for major value chain components
• › REC Silicon has the only announced expansion of the solar grade polysilicon capacity (Moses Lake)

Strong impact from IRA already Value chain growing The quest for low cost and low carbon

• › Strong demand from end users and module producers for low carbon PV supply chain
• › Moses Lake has ~ 70% lower carbon intensity than traditional polysilicon which is ~40% of total PV carbon footprint
• › With IRA incentives, Moses Lake is also competitive with Chinese producers on a cost per kg basis

PV manufacturing carbon footprint (g/kWh)

Source: The Ultra Low Carbon Solar Alliance

US PV Value Chain Capacity Projection

0 50 100 150

Moses Lake restart

GW

Online/Likely Announced

Polysilicon

Wafer

Cell

Module

Source: SEIA, Wood Mackenzie Source: REC Silicon research, public announcements and market analysts' reports

USA Solar Value Chain is Back

RESTART STATUS

Moses Lake Operating Ramp Status

› Estimated project completion cost increased by up to 10% due to contract labor, delay and efficiency

• › Starting to wind down construction activities
• › Full capability online by the end of the year

TECHNOLOGY AND VALUE CHAIN DEVELOPMENT CHALLENGES

Initiatives to address main topics

Secure and develop competence Industry and market position

• › Workforce development
  • Entry-level positions are very specialized, requiring 2.5 years to fully qualify in silane and FBR
  • Increased use of automation
    • Fewer employees, higher pay for skillset
    • Gap between legacy experience and advancements in machine learning/AI
• › Skilled trades
  • Welders
  • Electricians
  • Instrument Techs

• › Localized education and training

  • Establishing trade and education at local levels
    • High School
    • Community College

• › Regain leadership position in PV

  • America and EU are behind in PV technology
  • China dominates the market and technology
  • Value chain gaps
  • Reshoring technology and R&D
• › Quality
  • P-Type to N-Type roadmap
    • Going from PPB to PPT
  • Multiple recharges
    • Small form factor equals more surface area

SUMMARY

Summary

› Favorable legislation reshoring PV back to US

› High-purity polysilicon:

• Small form factor expected to be a larger part of mix
• FBR reduces carbon footprint in downstream value chain

• › REC Silicon supports reshoring with restart of Moses Lake facility

• Partnership with Qcells to bring value chain back to US

Upcoming event

REC Silicon will release its Q2 2024 results on Thursday, August 8, 2024, at 7:00 a.m. CEST.

The same day at 8:00 a.m. CEST, the company will host a videocast to present the results.

The live webcast from the presentation can be accessed at www.recsilicon.com or with the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20240808\_2/

Thank You

Wayne Osborne, MEM Silicon Gases Global Sales

www.recsilicon.com