LONGi Green Energy Technology, the solar PV manufacturing behemoth from China, says that the year 2024 will be a 'very difficult year' for the company as well as the industry, pointing to the oversupply situation in the PV market.
Speaking at its investor relations exchange meeting on July 4, 2024, LONGi's Chairman Baoshen Zhong said the problem of supply and demand mismatch is 'concentrated' and that the PV industry is now entering a stage of deep adjustment, most probably referring to the significant drop in prices seen globally due to overcapacity.
However, Zhong stressed, "In 2025, the company will be the first to return to the growth track and will enter a recovery state before the photovoltaic industry. The company's goals are very clear."
The Chinese company says it had a clear direction since the beginning of 2023 and accordingly carried out a series of work planning to remain in good stead.
Its strategy is to focus on technological upgrades with a focus on back contact (BC) technology. High cost has been one of the pain points for the commercialization of this technology, according to LONGi, which it is dealing with via research and development efforts, especially developing base metals. In H2/2025, the company is expected to 'solve the silver problem,' he said.
Since the launch of its hybrid passivated back contact (HPBC) based Hi-MO 9 modules in May 2024, it has achieved 1 GW orders on hand and another 5 GW in reserve.
It targets to meet the differentiated needs of customers based on BC including distributed scenarios where it sees immense scope for growth, as shared by Zhong in an exclusive executive chat with TaiyangNews Managing Director Michael Schmela as part of TaiyangNews & SNEC 2024 —Solar Leadership Conversations (see SNEC Exclusive: LONGi Executive Interview).
Meanwhile, despite the oversupply situation, LONGi continues on its manufacturing capacity expansion targets, aiming to reach a cumulative 200 GW of annual production capacity of monocrystalline silicon wafers, of which its Tairay silicon wafer will account for more than 80% share over the next 3 years. BC cell capacity will reach 100 GW, while that of monocrystalline modules is pegged at 150 GW.
By 2025-end, the 2nd generation hybrid passivated back contact (HPBC) production capacity will be around 50 GW, and 1st generation BC production capacity will be close to 20 GW, it announced.
To understand the solar supply, demand and prices in the solar PV market today, TaiyangNews is hosting a Special Webinar on Global Solar Market Developments: H1 Review & H2 Outlook. In attendance will be leading stakeholders from manufacturing, market research and industry lobby. It is scheduled for July 18, 2024. Registrations are free and can be done here.