Daqo New Energy has signed another high-purity polysilicon supply deal, this time expanding on its partnership with equipment and mono wafer provider Wuxi Shangji Automation (Shangji).
The deal will see Daqo provide Shangji with 52,700MT of high-purity mono-grade polysilicon over a three-year term, starting this July.
As is customary with deals of this kind, actual price will be negotiated on a monthly basis by both parties taking into account market conditions at the time, with Shangji making an advance payment to Daqo.
The deal is to secure Shangji’s immediate access to high-purity polysilicon and comes less than a week after the wafer manufacturer penned a major collaboration agreement with GCL-Poly to develop a 300,000MT polysilicon factory in Inner Mongolia.
That project, which will require a total investment of US$2.78 billion, with Shangji taking on a 35% stake, would become the world’s largest on completion but is to be developed in phases, the first of which will have a capacity of 60,000MT.
“We are very pleased to further strengthen our strategic partnership with Daqo New Energy through this second long-term polysilicon contract between us. We will continue to expand our mono-wafer capacity with advanced technology to better serve the fast-growing solar PV market,” Jianliang Yang, chairman at Wuxi Shangji Automation, said.
The deal also comes amidst a raft of activity in polysilicon supply, with providers announcing a slew of supply contracts and expansion plans as demand for the material from upstream solar players continues to rise.
Earlier this week Daqo announced it had signed a similarly-termed deal with wafer producer Zhonghuan Semiconductor for 41,000MT.