Long Term Raw Material Supply Deals For JA Solar

JA Solar Goes In For Long Term Strategic Procurement Agreements For Monocrystalline Silicon Wafers, Polysilicon & Solar PV Glass To Support Production Capacity Expansion Plans
11:04 PM (Beijing Time) - 04. January 2021
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Amid fears of raw material shortage for solar PV manufacturers, leading companies with massive expansion plans like JA Solar are signing up for long term procurement deals to ensure stable supply. Changzhou Almaden will provide it with PV glass, while Daqo and JYT will supply polysilicon and monocrystalline wafers to the company respectively, as per the recent agreements signed. (Photo Credit: Changzhou Almaden Co., Ltd.)

Key Takeaways

  • JA Solar has signed up major procurement agreements for key solar PV raw material supply
  • JYT Corporation will supply it 1.260 million monocrystalline wafers for RMB 4.8 billion
  • Daqo New Energy has secured an agreement to supply JA Solar with 32,400 MT to 43,000 MT polysilicon over next 3 years
  • Changzhou Almaden will provide it with 79.6 million sq. mtr. of solar glass for RMB 2.1 billion

Solar cell and module producer from China, JA Solar exited 2020 and entered 2021 with some long term raw material supply deals in keeping with its capacity expansion announcements over the past year (see JA Solar To Build 6 GW Solar Module Line In China).

JA Solar said these contracts are in line with its future business planning and conducive to ensuring its long-term stable supply of raw materials and maintain stable profitability.

With JYT Corporation, it has secured a 3-year deal to procure monocrystalline silicon wafers to kick in from January 2021 and remain in effect till December 2023. Under the agreement, it will purchase 1260 million monocrystalline silicon wafers from JYT subsidiaries—Wuhai JYT Corporation and Wuxi JYT Corporation. The total value of this order stands at close to RMB 4.818 billion ($745 million) including taxes.

JA Solar will source this order through its subsidiary Baotao JA Solar Technology Co., Ltd.

Another contract the company has signed through another wholly-owned subsidiary Donghai JA Solar Technology Co., Ltd. is to source high purity polysilicon from Daqo New Energy placing an order for 32,400 MT to 43,000 MT. Daqo needs to complete the delivery between January 2021 and December 2023. The purchase price is fixed on a monthly basis.

Yet another raw material contract JA Solar announced on January 4, 2021 relates to the supply of solar PV glass. Under the agreement signed, Changzhou Almaden Co. Ltd. will supply 79.6 million sq. mtr. of solar glass to JA Solar between January 2021 and December 2022. The deal is valued at RMB 2.1 billion ($325 million) including tax.

With these deals, JA Solar—like its contemporaries Trina Solar, JinkoSolar and LONGi Solar among others—is locking in its share of massive capacity expansion plans announced by these industry biggies amid fears of raw material supply worries (see 20% Annual Revenue Growth For Canadian Solar In Q3/2020).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani