LONGi Solar is to procure more than 200,000 metric tonnes (MT) of polysilicon from upstream provider Tongwei under a two-year agreement.
In statements made to the Shanghai Stock Exchange today, Tongwei and LONGi said the duo had signed an agreement wherein LONGi will buy 203,600MT of polysilicon from Tongwei from the date of signing until 31 December 2023.
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The purchase price for the polysilicon is to be settled through monthly negotiations, however Tongwei noted that taking into consideration average selling prices (ASPs) for polysilicon today of RMB245.3/kg, the contract would be worth RMB44.2 billion (US$6.94 billion), excluding tax.
Polysilicon pricing remains high, with prices last week edging to a near four-month high. Polysilicon ASPs have not been this high since mid-December 2020, sending pricing high throughout the solar value chain. LONGi and Tongwei increased their wafer and cell prices respectively earlier this month.
Both statements to the market paid testament to the continued collaboration between LONGi and Tongwei, the duo having signed wafer supply contracts in January and September 2020.