Daqo signs a five-year supply agreement with a solar wafer manufacturer.

Daqo New Energy subsidiaries have signed a five-year polysilicon supply agreement with solar wafer manufacturer Shuangliang Silicon Materials.

From November 2022 to December 2027, Xinjiang Daqo and Inner Mongolia Daqo will supply Shuangliang with 150,300MT of high-purity mono-grade polysilicon. Prices will be negotiated monthly by both parties based on market conditions.

According to Longgen Zhang, CEO of Daqo New Energy, Shuangliang Silicon Materials, a subsidiary of Shuangliang Eco-Energy, has plans for rapid capacity expansion.

Daqo New Energy expects demand for high-purity mono-grade polysilicon to “remain strong,” especially as the market transitions to the next generation of n-type technology, according to Zhang.

Daqo New Energy increased its annual polysilicon production guidance to 129,000 – 132,000MT following a better-than-expected performance in the first half of 2022.

Shuangliang Silicon Materials recently signed a deal with Tongwei to purchase 222,500MT of polysilicon over the next four years.

According to research published last week by advisory firm Clean Energy Associates, global polysilicon capacities are on track to reach 536GW by the end of 2023 if all projects in the pipeline proceed as planned.