Item 1.01. Entry into a Material Definitive Agreement .

Agreement with Polymet Alloys, Inc.

On November 13, 2008, Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc., or Hoku Materials, entered into an Agreement, or the Agreement, with Polymet Alloys, Inc., or Polymet, for the supply of silicon metal to Hoku Materials for use in its planned polysilicon production facility in Pocatello, Idaho. The term of the Agreement is three years, commencing January 1, 2009. Each year during the term of the Agreement, Polymet has agreed to sell to Hoku Materials, and Hoku Materials has agreed to purchase from Polymet, specified volumes of silicon metal that meet certain purity and size specifications. The volume is fixed during each of the three years; provided that the parties may agree to increase the volume. Pricing is fixed during calendar year 2009, and the aggregate net value of the silicon metal products to be purchased by Hoku Materials under the Agreement in calendar year 2009 is approximately $6.5 million. Pricing is to be renegotiated for the second and third years of the Agreement; however, if the parties are unable to agree on pricing for either year, then either party may terminate the Agreement without liability to the other party. Either party may also terminate the Agreement under certain circumstances, including a material breach by the other party that has not been cured within a specified cure period, or the other party's voluntary or involuntary liquidation.

The Agreement will be filed as an exhibit to our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2008.

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