LONGi To Add 20 GW More Wafer Capacity In Chuxiong

LONGi Green Energy Signs Investment Agreement To Build Another 20 GW Monocrystalline Wafer Production Capacity In Chuxiong, China For RMB 2 Billion; Inks Module Supply Deal With Local Chinese Developer
10:18 PM (Beijing Time) - 08. January 2020
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LONGi Group will be building a new 20 GW monocrystalline silicon wafer manufacturing facility in Chuxiong under Phase III of its investment strategy. It may add another 20 GW in line with its strategic objectives and market conditions, the management said. (Photo Credit: LONGi Solar)

Key Takeaways

  • In Chuxiong, LONGi has signed investment agreement with local government to build 20 GW of additional monocrystalline wafer capacity for RMB 2 billion
  • This will be part of Phase III production capacity plans as Phase I and II with 10 GW each have been implemented already
  • The management may add another 20 GW of wafer production here if need be
  • LONGi Solar has signed a strategic cooperation agreement with China Huaneng Group Guizhou Branch
  • Under the deal, LONGi will supply its monocrystalline modules to the company to be used to build large-scale clean energy projects

Chinese solar power company LONGi Green Energy Technology Co. Ltd. has signed an investment agreement for a new 20 GW monocrystalline wafer facility in the Chinese city of Chuxiong which will cost a total of about RMB 2 billion ($286.78 million).

In Chuxiong, LONGi already has two monocrystalline silicon wafer facilities with 10 GW capacity each under Phase I and Phase II, both of which have been implemented. Now, in Phase III ‘according to the needs of strategic development’ LONGi is doubling its wafer production capacity in Lufeng County, Chuxiong Prefecture with another 20 GW mono silicon wafer project. For this, it has signed the investment agreement with the local government, it stated in a Shanghai Stock Exchange filing.

The management may plan another 20 GW wafer capacity in Chuxiong under Phase IV, basis market conditions, which would take the company’s cumulative wafer production capacity within Chuxiong to 60 GW. These plans, said LONGi, are in line with its ‘strategic needs for future capacity planning. It is beneficial for the company to further increase the production capacity of high-efficiency monocrystalline wafers, sieze the development opportunities of the monocrystalline market and continuously improve the monocrystalline market share,” the company explained.

These plans will be set in motion post a project feasibility analysis by the company’s board of directors.

LONGi’s total module capacity has also now exceeded 20 GW after its 10 GW monocrystalline module production fab in Chuzhou started production at full capacity with its Phase II 5 GW reaching construction close. This additional capacity increased the company’s total global module production capacity to an estimated 21 GW.

“In 2020, LONGi’s modules with 166 mm wafers will exceed 20 GW, accounting for 80% of planned capacity,” said LONGi Chairman Zhong Baoshen referring to the company’s Hi-MO 4 modules based on 166 mm silicon wafers it launched in 2019 (see Big Benefit For Modules).

Monocrystalline module supply deal

In another news from the company, LONGi said it has entered into a strategic cooperation agreement with the Guizhou branch of the country’s electric utility company China Huaneng Group under which both will expand the development of renewable energy.

The China Huaneng Group Guizhou Branch is into development and construction of wind and solar PV energy projects and has so far installed clean energy capacity of about 1.05 million kW.

As per the details shared in the official communication released, LONGi will supply its advanced monocrystalline modules that deliver lower levelized cost of energy (LCOE) solutions, but no specific number was put to this announcement. The cooperation will support the development of renewable energy in China, promote large-scale application of clean energy and contribute to the optimization of the grid.

“Both parties agreed on comprehensive cooperation to develop and construct new energy projects, improve the allocation of energy sources in industrial parks, and jointly operate the multi-energy complementarity projects,” stated LONGi. 

In December 2019, LONGi signed a 1.2 GW Hi MO4 Series solar PV module supply deal with India’s Adani Green Energy to be shipped till 2020 (see LONGi Solar Secures Module Supply Deal With Adani).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani