Leading solar module manufacturer JinkoSolar has signed a long-term purchase agreement with solar polysilicon and cell provider Tongwei, worth nearly 100,000MT.
The deal, officially signed between subsidiaries of JinkoSolar and Tongwei, has allowed Jinko to “lock in” its polycrystalline silicon supply chain, with both parties able to negotiate for additional purchases outside of that 93,000MT figure.
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Prices for additional orders will be negotiated based on market prices at the time.
Tongwei said the contract would run from this November until December 2023.
Kangping Chen, CEO at JinkoSolar, said strategic partnerships with raw material suppliers were “essential” for its business and to increase the firm’s competitive edge in the market.
“This is the first long-term contract with Tongwei for the steady supply of poly-Si, a win-win scenario that will no doubt bring on other advantages for both parties and further promote the development of renewable energy,” he added.
Supply chain certainty has become a critical topic in recent months, with supplies of both polysilicon and glass becoming constrained.
Polysilicon price spikes in August and September were exacerbated by incidents at facilities owned by GCL-Poly and Tongwei, however broader issues of supply and demand – with module manufacturers including JinkoSolar bringing more cell production in-house – have led to concerns over availability and pricing.
While some of those fears surrounding polysilicon in particular have eased, and Tongwei did indeed bring its flood-affected facilities back on stream quicker than expected, concerns have now surrounded the availability of solar-grade glass. Last week a letter co-signed by major solar module manufacturers in China said the price of glass was “out of control” as demand outstripped supply.