Subsidiaries of polysilicon producer Daqo New Energy have signed a five-year polysilicon supply agreement with solar wafer manufacturer Shuangliang Silicon Materials.
The deal will see Xinjiang Daqo and Inner Mongolia Daqo provide Shuangliang with 150,300MT of high-purity mono-grade polysilicon from November 2022 to December 2027. Prices will be negotiated by both parties monthly according to market conditions.
A subsidiary of Shuangliang Eco-Energy, Shuangliang Silicon Materials has rapid capacity expansion plans, according to Longgen Zhang, CEO of Daqo New Energy.
Zhang said Daqo New Energy expects that demand for high-purity mono-grade polysilicon will “remain strong, especially as the market gradually switches to the next generation of n-type technology”.
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.
For Shuangliang Silicon Materials, the deal comes after it recently signed a deal with Tongwei to procure 222,500MT of polysilicon over the next four years.
Global polysilicon capacities are on track to soar to 536GW by the end of 2023, assuming all projects in the pipeline develop as planned, according to research published last week by advisory firm Clean Energy Associates.