Daqo New Energy and JA Solar pen long-term high-purity polysilicon supply deal

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Daqo New Energy’s Phase 4B project is to come onstream in Q1 2022, adding 35,000MT of capacity. Image: Daqo New Energy.

Daqo New Energy and JA Solar have signed a long-term supply deal for high-purity polysilicon, the latest in a growing line of deals as manufacturers look to lock in polysilicon supply.

Under the terms of the agreement, Daqo will supply JA Solar with around 78,200 MT of high-purity mono-grade polysilicon for three-and-a-half years between July 2021 and December 2025.

Actual volumes and prices are to be negotiated on a monthly basis according to market conditions, with JA making an advance payment to Daqo.

Polysilicon supply and pricing has proven particularly volatile in recent months as demand far outstrips supply of the material. Poly spot prices have escalated to in excess of RMB150/kg (US$23.28/kg) in some instances, leading module prices to creep up as a result.

In Q4 2020, Daqo reported polysilicon ASPs of US$10.79/kg, indicating the extent to which prices have risen in just a few months. Daqo is to report its Q1 2021 figures next week.

Volatility is now expected to continue into 2022, when new capacity is to come onstream. Daqo is one such polysilicon supplier bringing new capacity online next year with its Phase 4B project, which is to add 35,000 MT to the supplier’s total capacity, slated to come online in Q1 2022.

Longgen Zhang, chief executive at Daqo New Energy, added: “With our Phase 4B project expected to come online in Q1 2022, we will enter another growth phase and be able to provide more ultra-high purity polysilicon to the market. We look forward to continuing to work together with our customers to provide more first-class products and solutions to the fast-growing global solar PV market.”

Read Next

June 15, 2021
Xinte Energy has unveiled plans to sell nearly 180 million shares in the company to raise funds for a new 100,000 ton polysilicon production facility.
June 15, 2021
PV Tech’s Carrie Xiao provides an extensive overview of the solar modules on display at this year’s SNEC PV Power Expo in Shanghai, comparing all of the major product launches, exhibitions and technologies that took centre stage.
June 14, 2021
US-based solar tracker manufacturer FTC Solar is expecting to record a loss of up to US$17.3 million in Q2 2021 as multiple headwinds combine to put a major drag on performance.
PV Tech Premium
June 10, 2021
In the second part of a two-part feature on the solar industry’s response to polysilicon price increases, Carrie Xiao hears from industry leaders about the importance of technology innovation, efforts to reduce waste and the need to avoid cutting prices blindly just to appease customers.
June 9, 2021
In the face of rising materials costs and natural disasters impacting output, solar manufacturers should heighten their focus on insurance placement to protect against large losses, a Chinese insurance broker has told PV Tech.
PV Tech Premium
June 9, 2021
Price increases in polysilicon and other auxiliary solar module materials have exerted much pressure on manufacturers, JA Solar has said, impacting on profitability in the first half of 2021. Xinming Huang, senior vice president at JA Solar, tells PV Tech how the company is responding.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021