Chinese vertically integrated wafer, solar cell and module manufacturer LONGi Green Energy Technology has locked in polysilicon and PV glass supply for a long term period in 2 separate agreements, it announced recently.
For polysilicon, LONGi has contracted OCIM Sdn. Bhd., a Malaysian subsidiary of Korea’s OCI Company Ltd. The 77,700 MT contract worth RMB 6.36 billion ($983 million) will be delivered to LONGi between March 2021 to February 2024.
According to Korean news portal Pulse News, OCIM has an annual polysilicon production capacity of 30,000 MT, and it plans to roll out an additional 5,000 MT under a ramp-up scheduled for 2022. The OCI group aims to lower its manufacturing cost for solar PV grade polysilicon by 15% in 2021 using various means including making use of idled production lines in Gunsan, South Korea where it had to stop production since February 2020 citing overcapacity in the solar sector due to China made polysilicon. Local media reports suggested back then that the 3 Korean fabs of OCI have an annual production capacity of 52,000 MT polysilicon (see Korean Solar Polysilicon Production No More For OCI).
The other agreement for LONGi is for PV glass to be used for 46 GW of estimated solar module capacity between 2022 and 2023. Flat Glass Group will supply LONGi with PV glass with 3.2mm thickness for front glass, and 2.0mm thickness for rear glass for the 46 GW module capacity. LONGi expects this contract to cost it RMB 10.4 billion ($1.6 billion).
LONGi said these agreements, added to several others signed in the recent past, are in line to meet its future business needs allowing it to lock in volume to ensure long-term stable supply of raw materials. Earlier this month, it signed a long term polysilicon deal with GCL-Poly for 91,400 MT (see GCL-Poly Cracks Polysilicon Deals With LONGi & TZS).