Chinese polysilicon supplier Daqo New Energy has locked in another high value long term polysilicon supply contract for close to 78,200 MT to be delivered to solar cell and module manufacturer JA Solar.
Daqo New Energy has signed the supply agreement through its subsidiary Xinjiang Daqo New Energy with a subsidiary of JA Solar. Under the deal, Daqo New Energy will provide JA Solar will 78,200 MT of high-purity polysilicon between July 2021 and December 2025 for which the latter will make an advance payment.
Actual volume and prices will be negotiated on monthly basis by both parties according to prevalent conditions.
This contract follows previous agreement the 2 Chinese companies secured in January 2021 for 32,000 MT to 43,000 MT between January 2021 and December 2021 (see Long Term Raw Material Supply Deals For JA Solar).
"With our Phase 4B project expected to come online in Q1 2022, we will enter another growth phase and be able to provide more ultra-high purity polysilicon to the market," said Daqo New Energy's CEO Longgen Zhang.
In another news from Daqo New Energy, on May 11, 2021 the company organized a field trip to its 70,000 MT polysilicon production facility in China's Shihezi city in Xinjiang province's Uyghur Autonomous Region, where it is building another 35,000 MT of mono-grade polysilicon under phase 4B that's expected to reach full capacity by Q1/2022.
The trip comes in the wake of Daqo New Energy finding itself accused of indulging in forced labor at this facility by an independent consultancy called Horizon Advisory (see Daqo Releases 2020 Revenue & Net Profit Guidance).
The trip had journalists from various media including Bloomberg, Financial Times and local Chinese news outlet Global Times, as well as solar industry analysts from Credit Suisse, CICC, Goldman Sachs, HSBC, JP Morgan and 7 institutional investors. Management said the site visit will help investors and analysts better understand the technical processes behind polysilicon manufacturing at a state-of-the-art facility.
"As stated repeatedly, we do not condone the use of forced labor under any circumstances. Furthermore, our visitors were able to see that our chemical process, which is highly automated, digitalized, technology-intensive, is not conducive to employing unskilled labor," explained Zhang. "Our visitors today were able to take away direct impressions of our facility as well as the quality of its management and workforce."
Daqo New Energy has uploaded the field trip video for free viewing here. Another similar trip will be held by the company for 35 solar industry investors and analysts from domestic Chinese institutions on May 12, 2021.
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