Polysilicon manufacturer Xinte Energy of China has revealed plans to build a high-purity polysilicon project with an annual production capacity of 200,000 tons, industrial silicon and supporting projects in China's Baotou City. It announced signing an investment framework agreement with the Baotou Municipal Government and Tumd Right Banner Government on February 8, 2021 in a stock exchange filing.
Under the company's plans, it will develop this capacity in Inner Mongolia in 2 phases of 100,000 tons each. Phase I is expected to cost close to RMB 8 billion. Construction completion and production commencement is expected to take 18 months to 24 months. However, before construction can begin, the site location and relevant approvals need to be in place.
Construction of the other half of the final capacity of 200,000 tons will follow basis market demand and relevant approvals secured.
Xinte Energy added, "Investment and construction of the 10 GW new energy power stations will proceed in phases according to the "14th Five-Year Plan" for new energy development and construction and load absorption on peak shaving access of power grid in Baotou City."
Xinte Energy, a subsidiary of Chinese electrical equipment manufacturer TBEA, explained that the collaboration with a regional government will further consolidate and utilize the group's advanced capacity of research and production in the high-purity polysilicon industry. It will also help expanding the scale of its daily operation activities, namely polysilicon production and construction of solar and wind power stations, in line e with the development strategy of the Group in the long run.
Xinte Energy's production plans are expanding in line with the long term deals it has been announcing of late. In January 2021, it secured a long term contract with Wuxi Shangji to procure 70,350 MT polysilicon till December 2025, which followed an agreement to supply 270,000 MT of polysilicon to LONGi Solar for 5 years (see RMB 6 Billion Polysilicon Supply Deal For Xinte Energy). The company currently operates 80,000 tons of polysilicon capacity in Xinjiang Province.