Daqo New Energy, a manufacturer of polysilicon has signed a three-year agreement with Wuxi Shangji Automation to supply high-purity polysilicon. As per the agreement, Daqo will provide 52,700 metric ton of high-purity mono-grade polysilicon to Shangji between July 2021 and June 2024.

The final prices for supply prices will be negotiated on a monthly basis by both parties, based on the market conditions. As per the terms of agreement, Shangji will make an advance payment to Daqo New Energy.

Founded in 2007, Daqo New Energy has a manufacturing facility in China which currently has an annual polysilicon nameplate capacity of 70,000 metric tons. Wuxi Shangji Automation is an equipment provider for manufacturing industries including the solar PV industry, which started its mono-wafer manufacturing business in 2019.

Earlier in November 2020, Trina Solar had signed a deal to buy 30,000-37,600 tons of mono-grade polysilicon from Daqo New Energy, with the contract running until December 2023. Similar to its contract with Wuxi, Trina and Daqo also agreed to negotiate actual prices on a monthly basis according to market conditions.