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

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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.”

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