China’s JA Solar Inks Third Major Polysilicon Purchase Deal in a Month
Tang Shihua
DATE:  May 13 2021
/ SOURCE:  Yicai
China’s JA Solar Inks Third Major Polysilicon Purchase Deal in a Month China’s JA Solar Inks Third Major Polysilicon Purchase Deal in a Month

(Yicai Global) May 13 -- JA Solar Technology has signed its third major procurement contract in the last 30 days, to ensure the supply of raw materials for its expanded production of solar cell parts.

A subsidiary of JA Solar inked a deal with Xinjiang Daqo New Energy on May 12 to buy about 78,200 tons of polysilicon between from this July through December 2025, Beijing-based JA Solar said in a statement yesterday. Xinjiang Daqo is almost 95 percent owned by New York-listed Daqo New Energy.

The new contract could be worth more than CNY10 billion (USD1.6 billion) based on the estimated unit price of a CNY24.8 billion deal JA Solar signed with another supplier, Xinte Energy, at the end of last month. That was for 181,000 tons of polysilicon. Under the latest contract, JA Solar said the parties will negotiate the purchase price on a monthly basis.

On April 21, JA Solar also announced a deal to buy 75,000 tons of polysilicon from Asia Silicon Qinghai.

Last September, the company unveiled plans to spend CNY10.39 billion on capacity expansion. By the end of 2021, its annual solar cell parts capacity is expected to top 40 gigawatts, and the capacity for silicon wafers and batteries will be about 80 percent of that, it said last month.

A boom in solar power plant construction has driven raw material demand across the industrial chain, encouraging firms to actively expand production capacity and sign long-term supply contracts with their upstream suppliers.

Shares in JA Solar [SHE:002459] closed up 2.2 percent today at CNY25.89 (USD4) each.

Editor: Tom Litting

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Keywords:   JA Solar