EN 
PT_BR 
The solar panel manufacturer JA Solar signed a long-standing agreement with manufacturer of monocrystalline silicon and polysilicon Daqo New Energy to supply the raw materials required for the production of photovoltaic modules until 2025.
According to the agreement, from July 2021 to December 2025, 78.2 million tons of silicon will be made available to JA Solar.
According to Fernando Castro, country manager from JA Solar Brasil, these long-term agreements are to guarantee the supply of the material and guarantee availability for the customer. He also comments that in this case the costs are reviewed every quarter.
“With the agreement, JA Solar wants to guarantee the desired growth of 100% in 2021, reaching 30 GW by the end of the year, as well as supporting growth up to 60 GW/year by the end of 2024”, states Castro.
Read more: JA Solar starts new expansion plans in 2021
Due to the scarcity of raw materials, the price for silicon reached peaks of US$ 23.28/kg. This factor may impact the increase in prices of photovoltaic modules. In the last quarter of 2020, the average selling price of polycrystalline silicon was US$ 10.79/kg
“Due to the very strong global demand for renewable energy, we do not expect a drop in module prices during this year, and we are a little worried about the possible explosion in demand in 4Q2021” highlights Castro.
Dago New Energy estimates that instability will continue until 2022, when new raw material production units are expected to come into operation. According to Longgen Zhang, the company's executive director, the new operation is expected to open in the first quarter of next year.
“We look forward to continuing to work together with our customers to provide first-class products and solutions for the growing global solar PV market,” says Zhang.
