LONGi Green Energy Technology's LONGi Solar Technology has signed up to receive a supply of solar glass products from China's Xinyi Solar Holdings Limited of an unidentified quantity. The supply would not be less than 35% of the forecasted annual demand of LONGi Solar.
Under the agreement, Xinyi Solar will supply solar glass from September 1, 2021 to December 31, 2024. In the 4th quarter of each year, starting from 2022, both parties will ascertain if the solar glass sales and purchase agreement needs to be renewed for another year so that the remaining term will continue to have a period of 3 years. Prices under the agreement will be negotiated on monthly basis.
For LONGi Solar, this long-term procurement framework contract is consistent with the company's future business needs, and ensures a stable supply of the raw material. The purchase volume, the company explained, accounts for its corresponding annual forecast.
It follows the company's February 2021 signed arrangement with the other leading Chinese solar glass maker, Flat Glass to supply enough glass worth 46 GW module capacity, to be delivered between 2022 and 2023 (see LONG Term PV Glass & Polysilicon Supply Deals For LONGi). In April 2021, its subsidiary signed RMB 5.531 billion PV glass agreement with Deli Glassware (see China PV News Snippets: Deli, LONGi China Huaneng, Hangzhou).
Solar glass suppliers as Xinyi Solar have been gaining in the market with higher ASPs and high sales volume. While sharing its H1/2021 financial results, the company said its aggregate melting capacity of solar glass reached 11,800 tons a day as of June 30, 2021. The company shared it has 16 new solar glass production lines in the pipeline each with a daily melting capacity of 1,000 tons, however it admitted that there was a substantial drop in solar glass prices in Q2/2021. While stating price fluctuations are not something to worry about since capacity expansion will continue to take place eventually, it would adjust its expansion plan according to changing market conditions (see Xinyi Solar's H1/2021 Revenues Grow Over 74% YoY).