Daqo New Energy Corp. today announced that it signed a three-year 112,800 MT ultra-high-purity polysilicon supply agreement with LONGi Green Energy Technology Co., Ltd.
Under the supply agreement, Daqo New Energy will supply LONGi with 36,000 MT (inclusive of 18,000 MT in 2020 covered under the Company's existing supply agreement with LONGi), 38,400 MT and 38,400 MT of ultra-high-purity polysilicon in 2020, 2021, and 2022, respectively. As part of the supply agreement, LONGi will make an advance payment to Daqo New Energy.
Mr. Baoshen Zhong, Chairman of LONGi, commented, "Daqo New Energy is one of the most important ultra-high-purity polysilicon providers in the industry. We have been working closely with them for years and are pleased to extend this strategic partnership for the next three years. Daqo New Energy's ability to consistently deliver polysilicon products which meet our stringent quality standards is critical in supporting us as we expand capacities of high-efficiency mono-crystalline solar products to meet growing demand from downstream customers."
Mr. Longgen Zhang, Chief Executive Officer of Daqo New Energy, commented, "LONGi has been an excellent partner over the past several years. We are extremely excited to have the opportunity to further strengthen our strategic partnership with them. Developing high-efficiency solar products is critical to driving future growth for solar manufacturers. High-efficiency mono-crystalline solar products, which require ultra-high-purity mono-grade polysilicon as raw material, are increasingly popular amongst downstream customers and gaining market dominance. Our ability to produce ultra-high-purity polysilicon efficiently, leveraging our optimized cost-structure and growing production capacity, will allow us to benefit significantly from this growing trend."