Daqo Subsidiaries Sign Polysilicon Supply Agreement with Solar Manufacturer

In a key announcement, Daqo New Energy Corporation, a leading Chinese manufacturer of high-purity polysilicon for the global solar PV industry, has held that its subsidiaries Xinjiang Daqo and Inner Mongolia Daqo have signed a six-year high-purity polysilicon supply agreement with a leading solar manufacturing company in China. The name of the solar manufacturer is not yet disclosed.

Daqo said that under the supply agreement, Xinjiang Daqo and Inner Mongolia Daqo will provide this leading manufacturing company with a total amount of 432,000 MT high-purity mono-grade polysilicon from January 1, 2023 to December 31, 2028.

The official statement of the company held that the actual prices will be negotiated by both parties monthly according to market conditions.

Longgen Zhang, Chief Executive Officer of Daqo New Energy, said on the signing of the new agreement, "We continue to see robust demand for high-purity polysilicon as our downstream customers are expanding their capacities very fast and want to secure the supply for their raw materials. We expect that high-efficiency solar modules based on N-type technology will increase the market share very rapidly starting from next year. N-type technology requires even higher purity of polysilicon than the current P-type mono technology.”

He also added, “We have confidence to benefit from this trend and differentiate us from our competitors by providing high-purity polysilicon to address the fast growing demand for N-type products."

A week ago also, the two subsidiaries had signed a five-year high-purity polysilicon supply agreement with a solar manufacturing company in China.

Daqo New Energy

Daqo New Energy claims to be a leading manufacturer of high-purity polysilicon for the global solar PV industry. The company was founded in 2007 and it manufactures and sells high-purity polysilicon to photovoltaic product manufactures, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions.

As per Daqo, the firm has a total polysilicon nameplate capacity of 105,000 metric tons and is one of the world's lowest-cost producers of high-purity polysilicon.