Introduction: Interestingly, this lawsuit may have a big impact on the "self-discipline alliance" of the anti-involution industry, which has seen the light of day.

01 Turning your face to grab an order?

The two leading photovoltaic companies have ignited the new year with lawsuits.

JinkoSolar (688223. SH), its wholly-owned subsidiary, Shangrao Xinyuan Yuedong Technology Development Co., Ltd., has invested in LONGi Green Energy (601012. SH) and its agent, Jiangxi Shangwei Technology, filed a lawsuit. The lawsuit was filed on Jan. 3 and is scheduled to go to trial on Feb. 13.

The plaintiff demanded that LONGi immediately stop infringing the relevant invention patent rights and compensate for economic losses. The patents involved in the case are concentrated in the field of TOPCon cell technology and module technology, and the specific patent details are still unclear.

JinkoSolar occupies an absolutely dominant position in the TOPCon technology route, and its patent reserves are abundant. In 2022, when LG Group withdrew from the photovoltaic manufacturing field, Shangrao Xinyuan successfully acquired more than 740 LG invention patents.

These patents cover a wide range of key technical aspects of solar cell and module production, and have legal protection in many important market regions such as the United States, China, and Europe.

The relevant person in charge of LONGi Green Energy told the media: "The company will actively investigate and respond, and if necessary, it will also file a counterclaim against TOPCon and other technical products." ”

There is some speculation in the industry about the cause of this lawsuit.

One theory is that Jinko tried to swap TOPCon's patent with LONGi's BC patent, but the two sides did not negotiate.

In the author's opinion, this speculation is untenable. The "bomb" has to be carefully calculated, and then "exploded" in the most critical place. Just because the patent swap failed, JinkoSolar rashly launched a patent war, which is unlikely.

Jinko's TOPCon patents are of limited interest to LONGi. LONGi firmly believes that BC technology is the mainstream trend of the future crystalline silicon route, and has not focused on the field of TOPCon.

In addition, LONGi obtains TOPCon cells in the domestic and foreign markets, and more of them choose to source or outsource cells to reduce the risk of possible patent infringement.

Fighting patent wars may not be cheap, and Jinko certainly knows this. In recent years, litigation has been used more as a means to strengthen bargaining chips.

The author learned from a source close to LONGi that Jinko's turn of face is partly due to the factors of "grabbing orders". LONGi does not want to make a big deal out of the matter, and it is expected that a settlement will be made soon.

Looking back on the past, the battle of giant lawsuits will eventually return to the negotiating table.

02 Harm the Self-Regulatory Alliance?

Interestingly, this lawsuit may have a big impact on the "self-discipline alliance" of the anti-involution industry, which has seen the light of day.

According to industry insiders, Jinko and LONGi, as core members of the "self-discipline alliance" group of the photovoltaic industry, have their own responsibilities in maintaining industry order. Jinko is responsible for the supervision of capacity self-discipline, and LONGi is responsible for leading the price supervision.

With the joint efforts of the two and their peers, the self-discipline of the industry has achieved initial results.

In the recent bidding, the vast majority of module quotations from leading and backbone enterprises in major industries are at the latest cost reference price of 0.69 yuan/W and above announced by the association.

On the polysilicon side, Tongwei Co., Ltd., Daqo Energy (688308. SH), GCL Technology and other companies have announced "production reduction and production control". On January 6, the quotations of domestic wafer manufacturers rose sharply again.

Now, there is a new plot in the competition between giants, revealing that the alliance under the self-discipline pact is not monolithic.

Jinko and LONGi, in addition to the responsibilities of the "team leader" of the loose self-regulatory alliance, are direct competitors.

The two giants are at odds on key issues such as pricing mechanisms, the definition of backward production capacity, and capacity allocation.

For example, the industry sets a minimum price red line, and large factories have large shipments and good reputation, making it easier to get orders. That's good for both families.

However, how to allocate the quota for the same price order is a tricky problem. There have been cases before that some manufacturers have tried to seek more quotas through gifts and disguised price reductions.

Compared with Jinko, the marginal return of the price insurance is more significant for LONGi, which is still committed to improving the cost performance of BC.

Jinko, on the other hand, relies on the newly built TOPCon production capacity of the Shanxi base, which has obvious cost advantages. Therefore, for Jinko, if it is necessary to choose one of the two, strengthening the mainstream position of TOPCon and emphasizing shipment volume is more affordable than raising prices or guaranteeing prices.

On the side of the couch there is no room for others to sleep soundly. In the face of the increasing momentum of the BC route, Jinko will inevitably hope to further consolidate its market position in the field of TOPCon technology.

JinkoSolar has the largest number of patent applications and grants for Topcon. JinkoSolar's chairman, Li Xiande, has publicly shouted that he encourages the industry to achieve a win-win situation through patent licensing and paid use, but will also resolutely crack down on the practice of "using it without saying hello".

Putting aside the official rhetoric, Jinko's choice of "tough" LONGi is still a competition of interests.

On the other hand, LONGi Green Energy is facing the pressure of losing market share and technological transformation.

Although the 2024 module shipments have not yet been announced, according to the statistical results of various companies, JinkoSolar ranks first, and JA Solar (002459. SZ), Trina Solar (688599. SH) followed suit, and LONGi has slipped to fourth.

According to a source close to LONGi, in 2025, LONGi is planning a strategy of "No. 1 in global shipments" and has calculated under what circumstances it can return to No. 1. This is bound to meet Jinko, which is in full swing.

Alliances often begin to disintegrate from within. If there is disharmony between the "group leaders", the members of the Self-Regulatory Alliance will see the subtleties and learn from them. (Source: Alpha Workshop Green).

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