Daqo signs 112,800 MT polysilicon supply deal with Longi

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Daqo New Energy has revealed that it will deliver 112,800 MT of polysilicon to Longi Green Energy Technology over a period of three years.

The polysilicon producer will supply Longi with 36,000 MT in 2020, including 18,000 MT covered under an earlier supply agreement between the two companies. Daqo will then deliver 38,400 MT in 2021 and an additional 38,400 MT in 2022. The deal involves Longi making an unspecified advance payment to Daqo, according to an online statement.

“High-efficiency monocrystalline solar products, which require ultra-high-purity mono-grade polysilicon as raw material, are increasingly popular amongst downstream customers,” said Longgen Zhang, CEO of Daqo New Energy.

In June, Longi — the world’s leading mono silicon module manufacturer — revealed plans to add another 5 GW to its annual module production capacity in 2020 as it targets 16 GW of output this year and 25 GW next year. The Shanghai-listed company will spend RMB 2.4 billion ($349 million) on the production expansion plan at a facility in Taizhou, in China’s Zhejiang province.

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