Daqo units secure five-year polysilicon supply deal in China

China’s Daqo New Energy Corp (NYSE:DQ) said on Thursday that two of its units have been awarded a five-year contract to supply high-purity polysilicon to a large solar manufacturing company in China.

The deal was bagged by subsidiaries Xinjiang Daqo and Inner Mongolia Daqo. Under its terms, the two companies will deliver 57,600 tonnes of high-purity mono-grade polysilicon to the unnamed client. The supplies will be carried out through December 2027.

Daqo New Energy noted that the actual prices of the deliveries will be negotiated on a monthly basis according to the market conditions.

“As one of the customers' favorite high-quality polysilicon suppliers, we are very well positioned to greatly benefit from the healthy and sustainable growth in the solar PV industry and outperform our competitors with our highly efficient operations and first-class quality,” said Longgen Zhang, CEO of Daqo New Energy.

Daqo New Energy has a total polysilicon nameplate capacity of 105,000 tonnes. Last month, the Chinese group was contracted to supply 150,300 tonnes of high-purity polysilicon to the solar wafer business of China’s Shuangliang ECo Energy Systems. It also won a six-year order to supply 432,000 tonnes of mono-grade polysilicon to an unnamed solar product maker.

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