LONGi signs major multi-year polysilicon deal with Tongwei

• LONGi Solar is to procure more than 200,000 metric tonnes (MT) of polysilicon from upstream service provider Tongwei under a two-year agreement.

In statements made to the Shanghai Stock Exchange today, Tongwei and also LONGi said the duo had authorized an agreement wherein LONGi will certainly purchase 203,600 MT of polysilicon from Tongwei from the date of finalizing up until 31 December 2023.

The purchase price for the polysilicon is to be settled via monthly arrangements, nonetheless Tongwei kept in mind that taking into consideration ordinary market price (ASPs) for polysilicon today of RMB245.3/ kg, the contract would be worth RMB44.2 billion (US$ 6.94 billion), omitting tax obligation.

Polysilicon prices stays high, with prices last week bordering to a close to four-month high. Polysilicon ASPs have not been this high considering that mid-December 2020, sending rates high throughout the solar value chain. LONGi and also Tongwei increased their wafer and also cell prices respectively earlier this month.

Both statements to the market paid testimony to the ongoing cooperation between LONGi and also Tongwei, the duo having actually signed wafer supply agreements in January and September 2020.