JinkoSolar Holding Co. Ltd., a major Chinese integrated manufacturer of PV products, announced on August 17 that its principal operating subsidiary Jinko Solar Co. Ltd. has entered a long-term agreement to purchase more than 70,000 tons of polysilicon from German supplier Wacker Chemie AG over a period from September 2021 to December 2026. While a part of Wacker’s production capacity will be reserved for Jinko, the price of its polysilicon will fluctuate in accordance with the conditions of the market. Wacker is currently producing polysilicon at its facilities in Germany and the US.
This deal is the second long-term polysilicon supply agreement that Jinko has made since 2020. In November last year, Jinko and Chinese conglomerate Tongwei Group Co. Ltd. arranged a contract under which Tongwei’s polysilicon manufacturing subsidiaries such as Yongxiang Co. Ltd. will provide Jinko with 93,000 tons of polysilicon between 2020 and 2023.
Besides the agreement with Wacker, Jinko also announced that it will be building an ingot and wafer plant in Vietnam. The plant is set to have a production capacity of 7GW and entails an investment of US$500 million. Due to the increasing tensions between China and the US over trade and geopolitical matters, Jinko is proactively setting up overseas bases and diversifying the sources of its upstream materials.