- Tongwei, JinkoSolar and JYT Corporation have pooled in RMB 3 billion in a polysilicon production company
- While Tongwei’s Yongxiang is 51% stakeholder with RMB 1.52 billion investment in the company, JYT holds 34% stake with RMB 1.02 billion investment
- JinkoSolar is 15% stakeholder with RMB 450 million and gets guaranteed supply of 30,000 tons annually out of 100,000 tons annual capacity under phase I
Sichuan Yongxiang Energy Technology Co., Ltd., the polysilicon production joint venture between Tongwei, JYT Corporation and JinkoSolar has raised RMB 3 billion from the trio, making them 51%, 34% and 15% stakeholders in the project company, respectively.
While Tongwei has invested RMB 1.52 billion ($238 million) through its wholly-owned subsidiary Yongxiang Co., Ltd., JYT has pooled in RMB 1.02 billion ($159 million) and JinkoSolar another RMB 450 million ($70 million). This investment will enable the project company to build 100,000 tons of annual high-purity polysilicon production capacity under phase I of the 200,000 ton investment project. It will ensure JinkoSolar an annual, stable supply of around 30,000 tons once the line is fully operational.
The new facility will be located in Leshan of China’s Sichuan province, which as JinkoSolar pointed out, is geographically close to the company’s major mono wafer production facilities.
“By securing this new line of clean, high-quality and highly reliable raw material, we will be able to guarantee the long-term reliability of our wafer and module production for the next few years,” said JinkoSolar CEO Kangping Chen.
The 100,000 polysilicon project, worth RMB 7 billion, is scheduled to come online before the end of December 2022, and ramp up before the end of May 2023. Phase II will be moved basis market conditions. Entire 200,000 ton project will cost RMB 14 billion, according to Tongwei’s estimates.
The details come at a time when the global PV module pricing has shot up thanks to tight supply of raw material like polysilicon (see High Prices Leading To Solar PV Product Inventory Piling Up).
Tongwei and JinkoSolar had announced a strategic agreement to jointly invest in solar wafer and polysilicon production capacity in February 2021 (see Tongwei To Launch Manufacturing JV With JinkoSolar).
At the end of H1/2021, Tongwei’s total annual high-purity polysilicon crystalline silicon production capacity of 80,000 tons in Leshan, Baotou and Baoshan and it is aiming to reach 330,000 tons by the end of 2022 (see Tongwei’s H1/2021 Cell Shipments Nearly Double).
JinkoSolar will speak at the upcoming TaiyangNews Solar Module Innovations virtual conference on Nov. 15/16 about “BIPV Market Analysis and Product Introduction”. For more info and free registration, click here.