Daqo bags six-year polysilicon deal from Chinese solar manufacturer

China’s Daqo New Energy Corp (NYSE:DQ) has received a contract to supply high-purity polysilicon to an unnamed solar manufacturing company in China over a six-year period.

The deal was placed with two of Daqo New Energy’s subsidiaries – Xinjiang Daqo and Inner Mongolia Daqo, the parent company said on Tuesday. Under the arrangement, the two companies will deliver a total of 432,000 tonnes of mono-grade polysilicon at prices that will be negotiated on a monthly basis according to the market conditions.

Supplies will take place between January 1, 2023, and December 31, 2028.

"We continue to see robust demand for high-purity polysilicon as our downstream customers are expanding their capacities very fast and want to secure the supply for their raw materials,” said Longgen Zhang, CEO of Daqo New Energy. He noted that demand is anticipated to grow further as solar modules based on N-type technology become more widespread.

“We have confidence to benefit from this trend and differentiate us from our competitors by providing high-purity polysilicon to address the fast growing demand for N-type products," the CEO added.

Earlier this month, Daqo New Energy was contracted to supply 150,300 tonnes of high-purity polysilicon to the solar wafer business of China’s Shuangliang ECo Energy Systems.

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