The confrontation of photovoltaic technology routes has been further escalated. JinkoSolar (688223. SH) is facing off in court against the BC (back contact) camp represented by LONGi Green Energy (601012.SH).

In January 2025, JinkoSolar's holding subsidiary, Shangrao Xinyuan Yuedong Technology Development Co., Ltd. (hereinafter referred to as "Xinyuan Yuedong"), sued LONGi Green Energy, which is also in the first echelon, in the Intermediate People's Court of Nanchang City, Jiangxi Province, demanding that LONGi immediately stop infringing on the relevant invention patent rights and compensate for economic losses. In the same month, Xinyuan Vietdong filed a patent infringement lawsuit in the Tokyo District Court in Japan, and the target was still LONGi Green Energy.

In February, JinkoSolar filed a lawsuit against LONGi Green Energy in Europe after suing it in Australia for patent infringement. In just two months, JinkoSolar has announced four consecutive LONGi green energy in many places around the world, which is relatively rare in the photovoltaic industry.

LONGi Green Energy also took up the weapon of counterattack, suing JinkoSolar for infringement in Jinan, Shandong Province and the United States. The two leading companies sued each other, and the cause of action mainly involved TOPCon cell technology and module design and manufacturing technologies.

TOPCon is the technology chosen by most PV companies at present, and its efficiency is higher than that of the previous generation of mainstream technology PERC (passivated emitter and backside contact), but it has not opened up a gap that is enough to form a barrier, and is currently facing a serious stock game. BC is also a technology that is ahead of PERC, although the efficiency is excellent, it is trapped by a series of problems such as cost, technical threshold, process flow, etc., and it will take time to become a mainstream technology.

However, the competition in the photovoltaic industry is particularly cruel. The "latecomer" BC does not have too many homogeneous competitors for the time being, and its advantages are also recognized by more and more customers, gradually eroding TOPCon's market share.

With the restructuring of the photovoltaic industry pattern, the intergenerational competition for technology in the photovoltaic industry is becoming more and more intense, and a large number of enterprises are betting on the two major technical routes with real money, whether it is BC or TOPCon, they need to use a stronger voice to win the "throne" of mainstream technology.

Behind the patent litigation war, the essence is a commercial war between enterprises, but the patent litigation war that spreads in the industry, will there be a winner?

Two technologies, different destinies

Since PERC is no longer mainstream, PV companies have tried to establish a strong competitive advantage by pushing a technology into the mainstream.

The reason is simple, this path has been proven to be feasible. LONGi, a veteran photovoltaic company, has established a technical advantage at the barrier level through monocrystalline technology, thus maintaining its leading position for many years, and its commercial benefits are huge.

When PERC began to be withdrawn, the TOPCon technology, which is less difficult to commercialize, was rapidly popularized.

JinkoSolar, which was the first to raise the banner of the TOPCon camp, has undoubtedly enjoyed technological dividends. In 2019, JinkoSolar began to build a mass production line for N-type TOPCon cells, making it the first company in the industry to deploy N-type TOPCon cells and modules.

Times Finance reviewed JinkoSolar's production progress on TOPCon technology and found that in 2022, JinkoSolar has established a number of TOPCon cell factories with a scale of more than 8GW, making it the first company in the industry to achieve large-scale mass production of TOPCon technology products.

JinkoSolar Chairman and CEO Li Xiande said in JinkoSolar Holding Co., Ltd.'s 2024 annual results statement announcement that it expects to reach 120GW, 95GW and 130GW of monocrystalline silicon wafers, high-efficiency cells and modules by the end of 2025.

However, the problem with TOPCon is that the threshold is low, and almost all well-known companies in the industry have deployed this technology. According to incomplete statistics from Times Finance, JA Solar (002459. SZ), Trina Solar (688599. SH), Tongwei Co., Ltd. (600438. SH), Junda Co., Ltd. (002865. SZ), Chint New Energy, Canadian Solar (688472. SH), a new energy and other well-known photovoltaic companies have joined the TOPCon camp.

Some industry insiders told Times Finance that TOPCon's patents are relatively scattered, which means that there are almost no technical barriers. For businesses, the only way to stay ahead of the curve is to keep scaling up. Homogenization will seriously affect the life cycle of the technology, and TOPCon, as a continuation of PERC, has improved efficiency but has shown signs of surplus in the short term.

According to InfoLink statistics, the cumulative shipments of TOPCon cells in 2024 will reach 109.3GW, accounting for 67% of the total shipments. TOPCon, which has a low threshold feature, has collapsed due to homogeneous competition, which has led to the collapse of prices before enterprises can enjoy more product price dividends. The price of TOPCon cells dropped by 40% from RMB 0.47/W at the beginning of 2024 to RMB 0.28/W at the end of the year.

At present, JinkoSolar has officially announced that it is cautious about capacity investment in 2025, and there is no new capacity except for the TOPCon technology upgrade.

Compared with TOPCon, the number of PV companies that choose BC with a higher threshold and commercial mass production is relatively rare.

Times Finance noticed that the only large-scale photovoltaic companies that have truly commercialized BC are LONGi Green Energy and Aiko (600732. SH) two. TCL Zhonghuan (002129.SZ) is expected to become the third photovoltaic company to implement the mass production of BC technology. At the Japan International Solar Photovoltaic Exhibition in February this year, TCL Zhonghuan launched its new BC module, which was reported by the media and said that this new BC module may be mass-produced in the middle of this year.

However, well-known photovoltaic companies such as JinkoSolar, Tongwei, Junda, and JA Solar have also laid out BC technology, while companies such as Yingfa Deyao and Jinyang New Energy have begun to invest in BC production capacity. JinkoSolar mentioned in an announcement in October last year that "from the perspective of R&D, the company continued to increase investment and built a BC R&D production line...... The company is confident in the leadership of BC-related R&D and is currently evaluating the scale of future production capacity investment. ”

The research report of Zhongyuan Securities pointed out that the industrialization problem superimposed on the photovoltaic has entered the adjustment cycle, the product profitability is under pressure, and the commercialization process of BC batteries is slow. From the perspective of the progress of major photovoltaic companies in the BC field, LONGi and Aiko are leading in the R&D progress, production capacity and shipment of BC products, while other manufacturers are mostly in the pilot line stage.

According to Times Finance, there are two main doubts about BC technology in the market: long production process and high investment cost. The two complement each other, and the yield problems caused by long processes and many processes make the investment cost high.

Zhang Yingbin, head of strategic products and marketing at Trina Solar, has publicly stated that the single GW transformation of TOPCon cells is about 30 million yuan to 40 million yuan, and the investment cost of a single GW of BC cells is 250 million yuan to 300 million yuan. The above-mentioned institutions also pointed out that, judging from the iterative process of photovoltaic technology in the past, the leading enterprises in the early stage of new technologies have financial strength, scale and cost advantages, and can bear the large-scale R&D investment in the early stage and the losses in the early stage of industrialization, and the second- and third-tier enterprises will follow up.

The choice of technology is beginning to diverge among customer groups.

According to TrendForce's China PV Industry Bidding Database, the bidding volume of PV modules in 2024 will be approximately 297GW, of which 15.7GW will be tendered for HJT/BC modules (including 12.6GW/1.15GW for HJT/BC and 1.5GW for HJT/BC), a significant increase over 2023.

Specifically, power generation groups of central state-owned enterprises such as China Huaneng, Guangdong Hydropower, China Huadian and State Power Investment Group have clearly purchased BC cell products in the bidding for photovoltaic modules, especially in the bidding process of China Huaneng in September 2024, it is clear that BC modules will be set up separately.

Aiko Co., Ltd. told Times Finance that although the penetration rate of TOPCon is the highest at this stage, as BC's advantages are recognized by more and more customers, BC's production capacity (mainly Aiko and LONGi) will exceed 70GW by the end of 2025, accounting for 10%~15% of the world's estimated installed capacity, which has significantly increased compared with the single-digit penetration rate in 2024.

Zhong Baoshen, chairman of LONGi Green Energy, also said at last year's investor conference that it is expected that the silver consumption problem will be solved in the second half of 2025, and the cost of BC modules will be the same as or lower than TOPCon by the end of 2025.

However, JinkoSolar also pointed out in the research announcement that it is expected that TOPCon technology will remain the mainstream in the next 3~5 years, and after the introduction of invisible busbar technology in the future, the difference between the conversion efficiency of TOPCon and BC will be reduced, and the production cost of TOPCon will be advantageous, so TOPCon will continue to maintain a comprehensive leading edge.

Giants sued, and the war spread

At present, the litigation between the giants mainly focuses on TOPCon cell technology and module design and manufacturing technologies.

Times Finance learned from an industry insider familiar with patent litigation cases that the origin of patent litigation cases is that LG sold 745 photovoltaic patents in 2022, covering countries and regions including the United States, South Korea, Germany, China, Australia and Europe, etc., all of which are invention patents.

According to Times Finance, some media reported that JinkoSolar purchased 294 LG patents in the United States, 168 in South Korea, 166 in Germany, 114 in China, 2 in Australia and 1 in the European Patent Office. JinkoSolar, on the other hand, transferred 192 of these patents to Trina Solar between March and April 2024 and 131 patents from May to June 2024 after purchasing the patents.

At this point, the patent alliance of the TOPCon camp was formed.

"After Jinko purchased a bunch of patents, it communicated with JA Solar, Trina, and LONGi respectively." The above-mentioned industry insider said, "Jinko hopes that LONGi can share the cost of purchasing patents, but Jinko's requirements are too harsh, not only requiring LONGi to pay, but also opening BC patent licensing." ”

On issues such as patent litigation, Times Finance contacted JinkoSolar and LONGi Green Energy respectively. JinkoSolar did not verify the above information with Times Finance.

The relevant person in charge of LONGi Green Energy told Times Finance that the essence of the patent war is the product of the deepening of the industry's "involution", which may consolidate its market position in the short term, but may weaken the global technology leadership of China's photovoltaic in the long term. If the industry falls into a "patent arms race" instead of focusing on original technological breakthroughs, it will lead to the exhaustion of innovation momentum, the rigidity of technological paths and the passivity of international competition.

Although the source of the patent litigation war has not been confirmed by the two companies, the patent litigation war in the industry has begun. JA Solar and Trina Solar, both in the "Jingjingtian" alliance, are engaged in patent litigation battles with different companies.

Times Finance has contacted a number of companies involved in patent litigation, but most of them have remained silent about their patent litigation. It is worth mentioning that in the process of contacting a number of enterprises, Times Finance found that the concept of "patent war" is being weakened, and "protecting its own intellectual property rights" is a new expression of patent litigation.

From the perspective of public opinion, JinkoSolar and LONGi Green Energy are both making efforts in communication, trying to suppress each other in terms of volume and gain favorable bargaining chips for themselves. However, the uncertainty of the length of patent litigation has cast an impenetrable fog over the development of the photovoltaic industry.

"The impact of patent litigation on enterprises should be comprehensively analyzed in combination with the importance of the technology involved, such as whether it is significant, whether it is core, and the court's judgment." Meng Bo, a lawyer at Beijing Jingshi Law Firm, said in an interview with Times Finance, "Normally, civil litigation ends after the first and second instance, but intellectual property cases may face the other party's doubts about the basis of rights, and then give rise to administrative litigation on whether the patent is valid." In judicial practice, it is necessary to analyze the specific duration of the case in combination with the litigation strategies of both parties. ”

Behind the patent war is the business war?

In the eyes of practitioners, the core of patent litigation is to compete for the right to speak in the market, which affects the commercial profits of enterprises.

"Patent wars are also a game." Qi Haishen, CEO of Jinchen Co., Ltd., told Times Finance, "JinkoSolar is almost the biggest beneficiary of TOPCon technology. The essence of the confrontation between TOPCon and BC is a battle over technical routes. From the previous battle for production capacity to the battle for products, this product is the battle of the camp of the technical route and ecosystem. ”

Liu Jimao, founder of Hongda Solar, told Times Finance, "The patent war is mainly focused on core technologies such as TOPCon cell technology and module design and manufacturing. It takes about 12~18 months for general patent infringement cases to go from prosecution to final adjudication (including second instance), and complex cases may take 2~3 years or even longer, so patent wars have little impact on the industry and application. ”

He believes that the main purpose of the photovoltaic leading patent battle is to compete for the right to define technology and the right to speak in the market, through patent litigation, some photovoltaic companies try to accelerate the industry by strengthening patent protection, especially in overseas markets that attach importance to patents, in order to put an end to excessive involution. However, this round of patent war is not only difficult to achieve the goal of weakening competitors, but also does not help the battle between TOPCon and BC. Referring to historical cases, it is more likely that this round of patent war will eventually lead to settlement. ”

However, a practitioner told Times Finance that the white-hot patent war has an impact on actual business, especially when it comes to overseas market business. "Some large companies investing in power stations, international investment, and funders are concerned about patent protection, and the European and American markets, especially the United States, will be more concerned about patent protection, which will affect new orders to some extent. However, if it is on the component side, there is no patent issue involved. It's just that the potential impact of patent disputes is relatively large. ”

There are no winners in patent wars.

The four manufacturers in the first-line echelon of the photovoltaic industry, "Jingjing Tianlong", without exception, have all fallen into a loss-making situation. Thinking about how to get out of the downward cycle is the only choice for photovoltaic companies.

According to the relevant announcement, in 2024, JinkoSolar will achieve a net profit loss of 1.012 billion yuan, a year-on-year decrease of 114.66%; JA Solar expects to deduct a net profit loss of 4.160 billion yuan to 4.860 billion yuan, and Trina Solar's net profit loss attributable to its parent company will be 5.199 billion yuan, a year-on-year decrease of 190.35%. LONGi Green Energy expects to deduct a net profit loss of 8.3 billion yuan to 8.9 billion yuan after deducting non-attributable to the parent company.

Some practitioners pointed out that TOPCon products have a high degree of homogeneity, so they are facing the challenge of fierce competition in the stage of mismatch between supply and demand. The relevant TOPCon manufacturers intend to compete for sales share and consolidate their market position through patented weapons. Due to the high degree of technological differentiation and the deep patent moat of related companies, BC's sales volume and penetration rate are currently in a stage of steady growth.

"However, different technical routes have their own advantages and disadvantages, and the development stage is different, so it cannot be generalized." The above-mentioned practitioner added.

This article is from the WeChat public account "Times Finance APP" (ID: tf-app), author: He Mingjun, editor: Gao Qiurong, 36 Krypton is authorized to publish.