Subsidiaries of polysilicon producer Daqo New Energy have signed two polysilicon supply agreements with LONGi and an undisclosed Chinese manufacturer.
The deal with LONGi will see Inner Mongolia Daqo provide 251,280MT of high-purity mono-grade polysilicon from May 2023 to December 2027, while Xinjiang Daqo and Inner Mongolia Daqo will provide the unnamed Chinese manufacturer with 27,600MT of polysilicon between January 2023 and December 2027.
In both agreements, prices will be negotiated by both parties monthly according to market conditions.
This is the second such announcement by Daqo in less than a fortnight, as it recently signed a five-year polysilicon agreement with an undisclosed solar manufacturing company in China for 148,800MT of high-purity mono-grade polysilicon.
It secured another supply agreement in October with solar wafer manufacturer Shuangliang Silicon Materials for 150,300MT of high-purity mono-grade polysilicon.
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 and expects its production for Q4 2022 to be between 30,000MT to 32,000MT.
Global polysilicon capacities are on track to reach 295GW by the end of this year and nearly double in 2023 with 536GW, according to research published last month by advisory firm Clean Energy Associates.