OCI Holdings shares surged Friday on expectations of rising solar demand and a potential supply deal with SpaceX.

The stock rose 9.16 percent to 351,500 won as of 10:36 a.m., according to the Korea Exchange.

The gains were driven by optimism that new demand — including from emerging space-based applications — could lift the polysilicon market, with OCI seen as a key beneficiary.

“The outlook for Korean solar stocks will largely depend on partnerships with Elon Musk,” said Lee Jin-ho, an analyst at Mirae Asset Securities. “OCI is currently in the strongest position, with its long-term growth story and scale expanding the fastest.”

Analysts also pointed to the potential impact of space infrastructure demand. Hwang Sung-hyun of Eugene Investment & Securities said SpaceX’s proposed 100-gigawatt space data center scenario could generate an additional 250,000 to 300,000 tons of polysilicon demand, potentially pushing non-Chinese producers close to full capacity.

Investor interest has intensified following reports that OCI is in talks with SpaceX over a long-term polysilicon supply deal worth about 1 trillion won ($700 million).

Given the high entry barriers for ultra-high-purity polysilicon, such a deal could support a sustained premium tied to the emerging space value chain, analysts said.

Despite the rally, OCI’s recent earnings highlight lingering industry weakness. The company posted first-quarter revenue of 892.4 billion won and operating profit of 10.8 billion won, down 5.9 percent and 77.7 percent year-on-year.

Still, OCI has remained in the black for two consecutive quarters since the fourth quarter, suggesting a gradual recovery.

jylee@heraldcorp.com