When a company crosses the line from technical validation to signed commercial agreements with secured financing, markets take notice. HPQ Silicon has signed a non-binding memorandum of understanding with a strategic industrial partner to form a joint venture that would build and operate a 1,000-tonne-per-year commercial fumed silica plant valued at US$20.0 million.
The partner has already secured project financing. This follows January 30, 2026 independent verification confirming HPQ’s pilot-scale reactor produces commercial-grade “150” fumed silica. With the technical risk answered, now came the commercial deployment question which seems to now be answered with one breaking headline:
HPQ Signs Joint Venture MOU for a Commercial Fumed Silica Plant with Strategic Partner
WHAT YOU NEED TO KNOW
- Financing Secured: The strategic partner has already locked in project funding for the US$20.0 million commercial plant, eliminating a major execution risk.
- Grade 150 Verified: Independent testing on January 30, 2026 confirmed HPQ’s pilot reactor produces commercial-grade fumed silica meeting industry-standard 150 m²/g surface area and required viscosity specifications.
- Toxic-Free Process: HPQ’s plasma-based reactor eliminates silicon tetrachloride and hydrogen chloride – the hazardous chemicals that forced half the industry to relocate to China.
- Dramatic Cost Advantage: The single-step process consumes ~ 87% less energy and produces ~ 84% fewer emissions than conventional multi-step manufacturing while enabling on-site production.
- Q2 2026 Target: Definitive agreements are expected by the end of second quarter 2026, with plant delivery anticipated within 12 months of joint venture formation.
Commercial Structure and Strategic Intent
The joint venture is expected to own and operate the facility, with production sold under an offtake arrangement to the strategic partner (terms and conditions yet to be agreed upon). Under the contemplated structure, HSPI (HPQ’s wholly owned subsidiarywould receive recurring royalties on each kilogram of fumed silica sold, (price/kg not yet agreed upon), providing HSPI and HPQ with long-term exposure to operating revenues while maintaining a capital-efficient profile.
This structure is intended to align HSPI and HPQ’s interests with long-term production performance while creating a platform that can be replicated across multiple sites as demand grows. Management views this approach as a scalable pathway to commercial deployment rather than a single, stand-alone facility.
HPQ does caution with “While the MOU reflects a shared intent to proceed, there can be no assurance that a joint venture will ultimately be formed, that it will be completed within the anticipated timeline, or that it will prove commercially viable.”
STRATEGIC IMPLICATIONS
For decades, fumed silica manufacturing has relied on a toxic, multi-step process that converts metallurgical silicon into silicon tetrachloride, then hydrolyzes it at extreme temperatures while generating massive volumes of hydrogen chloride waste and CO₂ emissions. Environmental regulations pushed at least half of global production to China, creating supply chain vulnerabilities and locking manufacturers into centralized production models with complex logistics. What incumbents failed to achieve was elimination of the chemical inputs entirely – the breakthrough that enables decentralized, on-site manufacturing.
HPQ’s plasma-based Fumed Silica Reactor uses quartz as the sole feedstock and produces zero hazardous by-products. The November 2025 pilot-scale results demonstrated up to 191 m²/g surface area with 99.8% purity, and the January 2026 verification confirmed commercial-grade “150” specifications – the benchmark the entire industry had been waiting for.
This positions HPQ to redefine how manufacturers access a US$2.57 billion global market dominated by chemical giants who cannot easily replicate a process they don’t control.
The timing aligns with reshoring mandates and supply chain security concerns. Industries reliant on fumed silica increasingly seek alternatives to centralized Chinese production. HPQ offers localized manufacturing at or near the point of use, fundamentally restructuring logistics while delivering superior unit economics through dramatically lower energy consumption and zero waste management costs. The joint venture partner has already secured financing and defined market requirements. This is validation from an industrial buyer with capital committed.
CEO BERNARD TOURILLON:
“This is the demonstration of all the work we’ve done paying off. We’ve demolished the barriers to entry to make fumed silica. Now we’re building something solid, step by step. The fumed silica business is becoming a very strong standalone thing.”
INVESTOR TAKEAWAY
HPQ Silicon has transitioned from technical validation to signed commercial agreements with secured financing. The January 30, 2026 independent verification removed the scaling question, and the February 12, 2026 joint venture MOU answers the commercialization question. With a strategic partner who has capital committed and defined market requirements,
HPQ enters the revenue stage with a technology that eliminates toxic chemicals, dramatically reduces costs, and enables reshoring advantages that legacy producers cannot match without abandoning their entire infrastructure.
For investors seeking exposure to advanced materials disruption with tangible proof points and near-term commercial deployment, this marks the inflection from development to deployment.
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