Chinese polysilicon producer Xinte Energy has secured a polysilicon supply contract with a new entity, Qinghai Gaojing Solar Energy Technology. Xinte Energy will supply Qinghai Gaojing Solar Energy Technology Co with a total of 152,400 metric tonnes of polysilicon from July 2021 to December 2025 with prices being negotiated monthly. It is estimated that the contract could generate revenue of approximately $2.6 billion over the four and a half year agreement.
In February 2021, Xinte Energy announced that it was planning the world’s single largest polysilicon production complex. The facility is set to be developed in the city of Baotou, Inner Mongolia, and will be equipped to produce 200,000 metric tonnes of polysilicon per annum. Xinte Energy’s existing major hub for polysilicon production is an 80,000 metric tonne facility in Urumqi, Xinjiang.
Xinte Energy is a holding subsidiary of TEBA Co specializing in the research and development of photovoltaic new energy products, new silicon-based materials, advanced ceramics, zirconium-based materials, powder materials, and other products, and development and operation of wind and light resources and application of energy-saving and environmental protection technologies.
A recent report by Bernreuter Research highlighted that Chinese polysilicon manufacturers are set to overshadow manufacturers from other parts of the world. The manufacturers in the country have rapidly increased production capacities which threaten to cause an oversupply of polysilicon in the market. It was further estimated that the world would need to deploy 270 GW of new solar capacities by 2023, 143 GW more than industry predictions.