Daqo New Energy and JA Solar have signed a long-term supply deal for high-purity polysilicon. The announcement is in line with the trend of manufacturers looking to lock in polysilicon supply. Under the deal, Daqo will supply JA Solar with around 78,200 MT of high-purity mono-grade polysilicon between July 2021 and December 2025. Actual volumes and prices will be negotiated every month based on market factors, with JA making an advance payment to Daqo.
Polysilicon supply and pricing has been volatile in recent months as its demand is far supply greater than the supply of the material. Spot prices for polysilicon have climbed to about RMB 150 per kg (US$23.28/kg). This has also meant that module prices have crept up slightly. This volatility is now expected to continue into 2022, as new capacity comes onstream.
Daqo is a polysilicon supplier that is bringing new capacity online next year with its Phase 4B project, which is to add 35,000 MT to its total capacity, slated to come online in the first quarter of 2022. The company aims to provide more ultra-high purity polysilicon to the market and provide more solutions to the fast-growing global solar PV space.
JA Solar is a manufacturer of high-performance photovoltaic products. The company’s business covers silicon wafers, cells, modules, and photovoltaic power stations. JA Solar products are available in 135 countries and regions and are used extensively in ground-mounted power plants, commercial & industrial rooftop PV systems, and residential rooftop PV systems. In March 2021, JA Solar announced plans to develop a manufacturing hub in the Qidong Economic Development Zone in the Jiangsu Province, China. The hub will have a PV cell production capacity and module assembly of 20 GW each.
