The shortage of glass in China has been affecting the global industry, including photovoltaics, as the material is essential in the manufacture of solar panels.
This shortage is directly impacting the price of glass. According to Daiwa Capital Markets, the material has risen 71% since July last year.
Aiming to ensure the continuity of production of its photovoltaic modules, Jinko announced that the company and its subsidiaries have signed a solar glass purchase agreement with Flat Glass Group.
The contract will secure approximately 338 million square meters of laminated glass to support Jinko's production of 59 GW of high-efficiency solar modules over three years, from 2021 to 2023.
According to the manufacturer, the agreement with Flat Glass will guarantee a stable, long-term supply of solar glass and is in line with Jinko's strategic and operational plans.
“The long-term procurement agreement with Flat Glass is another major supply chain cooperation, following the company's successful cooperation with Tongwei for 93 thousand metric tons of polycrystalline silicon in the second half of 2020,” commented Kangping Chen , CEO of Jinko.
“This three-year contract will help the company secure long-term supply of solar glass and decrease volatility in the supply chain arising from rapid growth in downstream demand. Supply chain stability ensures the safety and reliability of our solar products,” he added.
Another manufacturer that announced a contract to receive photovoltaic glass with Flat Glass was LONGi. According to PV Magazine, the volume that will be supplied to the solar panel manufacturer this year will increase by 27.9 million square meters, and a further 46 GW (287 million square meters) of glass for solar panels will be supplied next year and during 2023 .The contract value is approximately (US$ 1.82 billion)
Glass shortage in the global chain
The lack of material in China was caused by several factors. Among them, restrictions from the Chinese government.
Since 2018, several restrictions have been applied to glass production. These limitations aim to reduce carbon emissions.
In addition to these measures by the Chinese government, the lack of glass intensified with the start of the Covid-19 pandemic. Due to the first shortage, in February last year, some glass industries in China had to suspend their activities, which contributed to the lack of material in the second half of 2020.
The lack of this material has affected several productive sectors, including the brewing and automotive industries.
While in the brewery, the lack of packaging can affect production, in the automotive industry, the lack of glass can negatively impact vehicle production in the country.