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Daqo solidifies its position through polysilicon deal with Jinko

Daqo New Energy, China’s third-largest polysilicon manufacturer has signed a new two-year sales contract with JinkoSolar, the world’s largest solar module supplier, for the delivery of up to 36,000 metric tons (MT) of high-purity mono-grade polysilicon in 2020 and 2021.
Following a one-year contract closed with Jinko in February for the supply of 10,350 MT in 2019, Daqo will deliver 12,000 to 14,400 MT in 2020 and 15,600 to 21,600 MT in 2021.
Jinko is expanding its in-house production capacity for monocrystalline wafers from 6.5 GW at the end of June to 11.5 GW by the end of the year.
Daqo currently has a nominal production capacity of 35,000 MT, which effectively equals 40,000 MT, in Shihezi, Xinjiang in northwestern China. The company will expand its capacity by another 35,000 MT to 75,000 MT by the end of the year.
Daqo’s contracted supply volumes for Jinko and Longi (see chart) will rise to a share of up to 80% in its annual output in 2021. The company is planning to increase the share of mono-grade polysilicon in its sales from 80% in the second quarter of 2019 to more than 90% in 2020.
- 2019
- contract
- Daqo
- expansion
- JinkoSolar
- manufacturer
- monocrystalline
- production capacity
- wafer
- Xinjiang Uyghur Autonomous Region
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