Chinese solar grade polysilicon producer Xinte Energy has secured RMB 630 million ($97 million) investment from solar cell and module producers JA Solar and JinkoSolar for its new wholly-owned subsidiary, that's been formed to construct 100,000 tons polysilicon capacity.
Both the module makers have pledged RMB 315 million ($48 million) each to claim 9% stake in the polysilicon project company that goes by the name Inner Mongolia Silicon Materials Company. Xinte Energy will hold 82% of the equity.
With this investment, both the module makers have secured guaranteed supply of polysilicon on priority basis from the 100,000 ton project. In May 2021, JA Solar signed up for 181,000 tons of primary polysilicon procurement from Xinte Energy to be delivered between April 2022 to December 2026 (see China PV News Snippets: Xinte, Risen, Clenara, GCL System).
The 100,000 ton polysilicon project worth RMB 8.79 billion is scheduled to come up in Baotou city, Inner Mongolia. TBEA, in a stock exchange announcement, said the new fab is expected to reach full capacity by June 2023. If the fab starts producing less than 50% or 50,000 tons annually for 2 consecutive years, both JA Solar and JinkoSolar will have the right to request Xinte Energy to repurchase their 9% stake each.
Investment from JA Solar and JinkoSolar, along with RMB 2.81 billion from Xinte Energy now expands the registered capital of Inner Mongolia Silicon Materials Company from RMB 60 million to RMB 3.5 billion, said Xinte Energy's parent company TBEA.
Earlier this year in February 2021, Xinte Energy entered an investment framework agreement with Baotou City to build ahigh-purity polysilicon fab with 200,000 tons annual capacity, in 2 phases of 100,000 tons each (see Xinte Energy To Build 200,000 Tons Polysilicon Fab).
In February 2021, JinkoSolar announced investment in 45,000 tons polysilicon and 15 GW monocrystalline silicon wafer production capacity with Tongwei (see Tongwei To Launch Manufacturing JV With JinkoSolar).
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