Chinese solar modules maker JinkoSolar Holding Co Ltd (NYSE:JKS) intends to invest CNY 450 million (USD 70m/EUR 61m) in a subsidiary of Tongwei Co Ltd (SHA:600438) to support the construction of a high-purity polysilicon production line.
More specifically, Jinko Solar Co Ltd will acquire a 15% equity stake in project company Sichuan Yongxiang Energy Technology Co Ltd in exchange for the aforementioned investment. The latter, in turn, will build a facility in Leshan, Sichuan Province, to produce 100,000 tonnes of high-purity polysilicon a year.
The move is part of the two companies’ strategic partnership that was announced in February 2021 and involves the creation of a couple of solar materials joint ventures. In addition to the equity interest in the project company, it will provide Jinko Solar with a stable polysilicon supply of almost 30,000 tonnes every year once the plant is fully operational.
Kangping Chen, CEO of Jinko Solar Co Ltd, noted that the new production line will be geographically close to the company’s major mono wafer production facilities. “By securing this new line of clean, high-quality and highly reliable raw material, we will be able to guarantee the long-term reliability of our wafer and module production for the next few years,” Chen added.
As of June 30, 2021, JinkoSolar has an integrated annual production capacity of 27 GW for mono wafers, 12 GW for solar cells and 31 GW for solar modules. In total, the company has nine factories around the world.