Chinese solar module maker JinkoSolar Holding Co Ltd and its unit Sichuan Jinko have signed an agreement to procure nearly 100,000 metric tonnes of polycrystalline silicon (poly-Si). The solar equipment manufacturer stated that the companies have entered into a long-term purchase agreement with second-tier subsidiaries of Tongwei Co Ltd to secure a stable supply of poly-Si in line with its strategic and operational plans.
Under the agreement, the order for close 100,000 metric tonnes is locked and the parties can now negotiate additional purchases and the price for future procurement, according to the release.
Tongwei is active in diverse sectors, including food processing and animal drugs, and also develops and manufactures polysilicon products. The order from JinkoSolar represents the first long-term contract between the parties.
REGlobal’s View: This agreement represents a series of recent contracts signed by solar module and cell manufacturers to secure their raw material supply chain in the long-term. It will help the module makers to not just maintain production timelines but also keep the prices in check.