Daqo secures last polysilicon supply deals as technically sold out for next two years

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Daqo said that JA Solar had secured between 32,400MT to 43,200MT mono-grade polysilicon supply from January 2021 through to the end of 2023. Image: Daqo

China-based polysilicon producer, Daqo New Energy Corp has secured near-term polysilicon supply deals with SMSL (Solar Module Super League) member, JA Solar and an unidentified existing customer that means it is sold out until a new polysilicon plant is built and operational sometime in 2022. 

Daqo said that JA Solar had secured between 32,400MT to 43,200MT mono-grade polysilicon supply from January 2021 through to the end of 2023. 

JA Solar is one of the few SMSL’s that is a fully integrated PV manufacturer and has ambitious capacity expansions plans over the next few years across wafer, solar cell and module assembly. Securing further near-term polysilicon contracts was critical to these plans. 

A second, yet unidentified customer also secured a near-term supply totalling 12,000MT, operating between January 2021 and December 2022.

Longgen Zhang, Chief Executive Officer of Daqo New Energy said, “Including the volume of these two agreements, approximate 79,800MT of our polysilicon has already been booked under long-term supply agreements for 2021.”

However, Daqo had secured a major deal with leading monocrystalline wafer producer, LONGi Green Energy Technology, which was for a total of 112,800MT over a three-year period in August 2020.

The polysilicon producer had also signed contracts with SMSL, Trina Solar in November, 2020. This was a three-year contract, lasting between November 2020 and December 2023 for between 30,000MT to 37,600MT of polysilicon supply.

With many of the contracts having minimum and maximum polysilicon quantities, taking the maximum quantity levels over the contracted timelines has highlighted that Daqo is technically sold out in 2021 and through the majority of 2022. 

At around 80,000MT of existing polysilicon capacity, further debottlenecking of Daqo's facilities could increase nameplate capacity but demand is still outstripping supply. 

Daqo secures last polysilicon supply deals as technically sold out for next two years

Daqo has plans to add approximately 40,000MT of new capacity from funds raised in an IPO in China for its manufacturing operations subsidiary, which requires approximately capex of around US$500 million and is planned to be operational and start ramping around mid-2022. 

Management had noted in its third quarter earnings call that by the end of 2020, China would have around 160GW of mono-wafer capacity but with significant capacity expansions under way the mono wafer capacity in China could reach around 300GW. 

However, the backdrop to polysilicon supply is that Daqo believes very little new capacity will come on stream in 2021 and only around 150,000MT of new capacity in China added in 2022.  

Read Next

May 11, 2021
European polysilicon provider REC Silicon has pinned hopes on plans to develop an ultra-low carbon solar PV value chain amidst a strengthening polysilicon market, stating it is confident that it will restart production at its Moses Lake facility.
May 10, 2021
LONGi Solar has set a record conversion efficiency of 25.09% for its N-type monocrystalline bifacial TOPCon cell that has been independently verified by the Institute for Solar Energy Research in Hamelin.
PV Tech Premium
April 26, 2021
LONGi’s ascent to the top of the solar module shipments league table captured headlines last week, but it also cements the view that consolidation in the sector is inevitable, with an oligarchy of majors dominating market share. Carrie Xiao assesses the prospects of those top five companies as 2021 heats up.
April 24, 2021
As polysilicon pricing continues to be volatile, this week’s Premium Briefing explores just how high pricing could climb to, when it may normalise, and what the likely impacts are on the downstream solar sector.
PV Tech Premium
April 20, 2021
‘Solar Module Super League’ (SMSL) member Canadian Solar is planning to launch its first N-type heterojunction (HJ) PV modules in the second half of 2021, PV Tech can reveal.
April 19, 2021
‘Solar Module Super League’ (SMSL) member JA Solar has confirmed its founder and chairman, Jin Baofang had returned to work at the company.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021