JinkoSolar signs long-term polysilicon supply deal with Wacker Chemie

By Charlie Duffield
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Wacker Chemie’s polysilicon facility in Charleston, Tennessee. Image: Wacker Chemie.

JinkoSolar has signed a long-term polysilicon supply agreement with Wacker Chemie, securing polysilicon supply in Germany and the US.

Under the terms of the deal, Wacker will supply more than 70,000 metric tons of polysilicon from September 2021 to December 2026.

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It comes amidst soaring prices for polysilicon globally, with solar manufacturers deciding the purchase price based on the market price.

Wacker will reserve the agreed capacity to JinkoSolar and supply polysilicon from its production sites in Germany and the US, drawing into context concerns from US authorities over the origin of polysilicon from China.

JinkoSolar is purported to have had solar module shipments seized by US customs officials in recent weeks related to the enforcement of a withhold and release order (WRO) for silicon metal products produced by Hoshine Silicon Industry.

The manufacturer has also cut its manufacturing capacity expansion plans for 2021 following weaker demand on the back of soaring material and module costs.

Kangping Chen, CEO of JinkoSolar, said: “By locking in over 70,000 tons of polysilicon from Wacker, we will ensure the reliability of the manufacturing of our products from a high-quality raw material source, as well as the stable supply of our high efficiency products to our global clients.

“With the rapid growth in demand for our global shipments, we have always set our sights on the long haul and are working towards reaching long-term partnerships with key raw material suppliers in the PV industry.”

In June, JinkoSolar invested in polysilicon provider Xinte Energy’s 100,000MT facility in Inner Mongolia, receiving priority access to the polysilicon produced as a result.

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