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Daqo extends polysilicon supply volume to Longi to 134,400 tons

Daqo New Energy, China’s third-largest polysilicon manufacturer, has signed a new three-year contract with leading monocrystalline wafer producer Longi Green Energy Technology for the supply of 112,800 metric tons (MT) of high-purity mono-grade polysilicon from 2020 through 2022.
Daqo will deliver 36,000 MT, including 18,000 MT covered under the supply contract closed with Longi in April 2018, in 2020 and 38,400 MT each in 2021 and 2022. Along with the quantities delivered in 2018 and 2019, Daqo’s supply volume to Longi will increase to 134,400 MT (see chart).
The polysilicon manufacturer currently has a nominal production capacity of 35,000 MT, which effectively equals 40,000 MT, in Shihezi, Xinjiang in northwestern China. Daqo will expand the capacity by another 35,000 MT to 75,000 MT by the first quarter of 2020.
Consequently, the contracted supply volumes for Longi will have a share of more than 50% in Daqo’s annual output. Longi is planning to expand its wafer production capacity from 28 GW at the end of 2018 to 65 GW by the end of 2021.
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