LONGi Contracts Xinte For 270,000 MT Polysilicon

LONGi To Procure 270,000 MT Polysilicon From Xinte Energy Over Next 5 Years For RMB 19.23 Billion, Replacing July 2018 Contract
11:44 PM (Beijing Time) - 16. December 2020
Presentation1

Leading wafer producer LONGi has replaced its previous order with Xinte Energy for 91,080 MT polysilicon, increasing the amount to 270,000 MT to be supplied by the latter now between January 2021 and December 2025. (Photo Credit: LONGi Solar)

Key Takeaways

  • LONGi and Xinte Energy have announced a new polysilicon supply contract
  • Under the agreement, LONGi will procure polysilicon worth RMB 19.235 billion over next 5 years
  • The new contract for 270,000 MT polysilicon replaces the 2018 contract between the 2 signed for 91,080 MT

World leading wafer manufacturer LONGi has placed a long-term order for polysilicon supply with fellow Chinese producer Xinte Energy with a total contract worth 270,000 metric tons (MT).

Under the contract signed, Xinte Energy will supply this amount of polysilicon between January 2021 and December 2025 negotiating purchase price on a monthly basis for a total contract value of about RMB 19.235 billion ($2.95 billion), excluding tax. Average purchase price under the deal is stated to be RMB 80,500 ($12,328) per MT.

The wafer manufacturer pointed out that its daily business needs are conducive to ensuring the company’s long-term stable supply of polysilicon.

In a stock exchange note, LONGi said this deal replaces its July 27, 2018 contract for polysilicon supply when the company placed an order with Xinte for 91,080 MT worth RMB 8.024 billion (see LONGi Signs Silicon Supply Deal With Xinte Energy).

Recently, in The Polysilicon Market Outlook 2024 Bernreuter Research said the PV module makers will continue to feel the pinch as polysilicon remains in short supply in 2021, but as new capacity comes online there may be a risk of oversupply for this critical ingredient in solar supply chain in 2022 that may intensify in 2023 (see Future Bright For Polysilicon Industry, Claims Research).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

Write, follow the author.
Email

Anu Bhambhani