- LONGi has contracted Ferroglobe of the UK to supply it with high-quality quartz and silicon
- The deal is part of the Chinese company’s strategy to access western markets
- Effective from January 1, 2024, the deal paves the way for an even closer collaboration, said Ferroglobe
Metal alloy and metallic products supplier Ferroglobe of the UK has been roped in by leading Chinese solar PV manufacturer LONGi for silicon supply, as the latter seeks non-Chinese supply of this critical material to access western markets.
Under a long-term supply agreement of an undefined period, Ferroglobe will provide LONGi with high-quality quartz and silicon. Ferroglobe says this will support the Chinese wafer manufacturer’s strategy to increase silicon material purchases from leading western suppliers.
LONGi’s efforts to find a non-Chinese supplier should help it in the growing markets of the US and European Union (EU). While the US doesn’t want any solar modules with Xinjiang-produced Chinese polysilicon coming into the country, there are murmurs of a safeguard duty on Chinese panels in the EU despite the bloc not having enough local supply to meet its ambitious targets.
Recently, the EU said it will carefully weigh the impact of any potential trade defense measures against Europe’s energy and climate targets (see EU Council & Parliament Agree Over Net-Zero Industry Act).
The agreement came into force on January 1, 2024. No other details of the quantity, the duration or the financial terms of the deal were disclosed.
Ferroglobe currently has quartz operations in Alabama, US. In October 2023, it acquired a high-purity quartz mine in South Carolina, US with capacity to produce over 300 kt/year with more than 10 years of reserve life. Production is scheduled to begin in H2/2024.
“This strategic partnership reflects the two companies’ shared commitment in their respective fields to operational excellence and traceability ranging from quartz to solar panels,” stated Ferroglobe, while adding that the two parties may go in for ‘even closer collaboration in the future.’
In June 2022, Ferroglobe announced a partnership with REC Silicon to supply the latter with US-produced metallurgical grade silicon metal in a bid to establish a fully traceable US solar supply chain (see MoU For Silicon Raw Material Supply In US).
Another Chinese manufacturer JinkoSolar also signed up Germany’s Wacker Chemie for 70,000 tons of polysilicon in August 2011 (see JinkoSolar Wants 70,000 Ton Polysilicon From Wacker).
