A subsidiary of polysilicon producer Daqo New Energy has signed a five-year polysilicon supply agreement with an undisclosed solar manufacturing company in China.
Xinjiang Daqo will provide 148,800MT of high-purity mono-grade polysilicon from January 2023 to December 2027. Prices will be negotiated by both parties monthly according to market conditions.
Daqo’s subsidiary continues to secure supply agreements after signing a 150,300MT high-purity mono-grade polysilicon supply with wafer manufacturer Shuangliang Silicon Materials last month.
With demand of its solar grade polysilicon remaining strong, the company posted high results in Q3 2022 with net profits close to US$1 billion and a polysilicon production volume of 33,401MT.
As solar PV demand continues to grow fast, solar cell technology is expected to largely switch to n-type technology in the next two to three years, according to Longgen Zhang, CEO of Daqo New Energy, who added: “We believe that our best-in-class polysilicon product and increasing capacity will enable us to greatly benefit from these trends.”
Following a better-than-expected performance during the first half of 2022, Daqo New Energy increased its annual polysilicon production guidance to 129,000 – 132,000MT.
Global polysilicon capacities are on track to reach 295GW by the end of this year and nearly double for 2023 with 536GW, according to a research published last month by advisory firm Clean Energy Associates.