Subsidiaries of Daqo New Energy have agreed two five-year polysilicon supply agreements with Chinese solar manufacturing companies, the most recent in a number of significant deals signed this year by the company.
The deals, the first for 57,600MT of high-purity mono-grade polysilicon and the second for 137,000MT, have been agreed with unnamed companies and will both be fulfilled until December 2027. Daqo has said that actual prices will be negotiated monthly according to market conditions.
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“We see our downstream customers continue to expand their capacities to address the fast-growing solar PV demand,” said Longgen Zhang, CEO of Daqo New Energy. “It’s the fourth long-term contract we signed with our customers in the fourth quarter of 2022 and it demonstrates our leadership in the polysilicon industry as a reliable and preferred supplier for many top-tier Chinese solar manufacturers.”
In October, Daqo New Energy signed a separate polysilicon supply agreement for 432,000MT of material, worth up to US$18 billion. The company also closed Q3 of 2022 with net profits close to US$1 billion. This was driven in part by the progressive drop in polysilicon production costs, as well as the increasing global demand for solar PV modules.
“We are very well positioned to greatly benefit from the healthy and sustainable growth in the solar PV industry,” Zhang added.
Daqo plans to expand further with its Inner Mongolia facility set to be complete in 2023, increasing the company’s capacity from 105,000MT to 205,000MT.