Daqo Signs Year’s 2nd Polysilicon Deal With JinkoSolar

JinkoSolar Contracts Daqo New Energy For High-Purity Polysilicon Order For Supply Quantity Being 12,000 MT To 14,400 MT In 2020 & 15,600 MT To 21,600 MT In 2021
04:03 AM (Beijing Time) - 12. September 2019
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In February 2019, JinkoSolar placed a high-purity polysilicon order for 10,350 MT with Daqo New Energy. Now, the world's largest module make, which has been quickly expanding its wafering capacities, has contracted Daqo for another 2-year polysilicon supply deal. (Photo Credit: TaiyangNews)

Key Takeaways

  • Daqo New Energy has signed a 2-year high-purity polysilicon supply deal with JinkoSolar
  • It will ship 12,000 MT to 14,400 MT within the year 2020 and another 15,600 MT to 21,600 MT in 2021
  • Shipments will be priced according to market pricing on a monthly basis, said Daqo management

Chinese silicon producer Daqo New Energy Corp has entered into yet another deal with JinkoSolar Holding Co., Ltd., to supply the world’s largest module manufacturer with high-purity polysilicon over the next 2 years. Daqo will supply 12,000 to 14,400 MT of polysilicon during calendar year 2020 and another 15,600 to 21,600 MT in 2021.

Prices will be determined on a monthly basis according to market pricing.

 “Once our Xinjiang polysilicon production facility expands to 70,000 MT capacity by the end of this year, we will be able to meet the rapidly growing demand from our mono-solar customers and the global solar PV industry,” said Shihua Su, Chief Marketing Officer of Daqo. The company sold 80% of its polysilicon to mono customers in Q2/2019 and sees the demand picking up further to account for 85% of all polysilicon sold by the company in Q3/2019 (see Daqo Sales Up But Losses In Q2/19).

This is Daqo’s second deal with JinkoSolar within this year; the latter had placed an order for 10,350 MT polysilicon in February 2019 (see Daqo Signs Polysilicon Supply Deal With JinkoSolar). A month back in August 2019, LONGi Solar contracted Daqo to deliver 112,800 MT ultra-high-purity polysilicon between 2020 and 2022 for an undisclosed amount (see Daqo Bags 3-Year Polysilicon Deal With LONGi).

JinkoSolar is in need of more high quality silicon as it quickly expands its wafer capacities. It is aiming to end the year 2019 with 15 GW of annual wafer production capacity out of which 11.5 GW will be mono wafers (see JinkoSolar Continues Strong Run In Q2/2019).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani