JA Solar has purchased additional silicon materials from the Asian silicon industry, with an estimated amount of up to 10.5 billion yuan
Recently, the price of silicon materials has been rising continuously and transmitted to the downstream industrial chain, which has had a considerable impact on the development of the photovoltaic industry this year. Even so, it can not stop the company's "enthusiasm" for silicon materials and continue to sign silicon material procurement contracts.
On April 21, JA Solar Technology Co., Ltd. (hereinafter referred to as "JA Solar") issued an announcement regarding the signing of a polysilicon procurement contract. The announcement showed that JA Solar Technology Co., Ltd. (hereinafter referred to as "Donghai Jing Australia”) purchased polysilicon materials from Asia Silicon Industry (Qinghai) Co., Ltd. (hereinafter referred to as “Asia Silicon Industry”) from September 2020 to August 2025. The total purchase is expected to be approximately 75,000 tons. According to the latest Based on the silicon material price of 140,000/ton, the estimated amount of this contract has reached 10.5 billion yuan.
This is not a brand new procurement contract, but on August 24, 2020, based on the "Polysilicon Purchase and Sale Long Order Contract" signed by Donghai JA Solar and Asia Silicon, the purchased quantity of polysilicon materials and the extension of the supply period have been added.
Previously, the contract signed by the two parties only involved the purchase of 19,800 tons of silicon materials, which has now increased to 75,000 tons. The reason why JA Solar will add orders for silicon materials can actually be seen from JA Solar's 2020 annual report.
As of the end of 2020, JA Solar has a module production capacity of 23GW, and the upstream silicon wafer and battery production capacity is approximately 80% of the module production capacity. According to the company's announced construction progress of the projects under construction, the new high-efficiency production capacity of Qujing Silicon Wafer, Ningjin Battery, Yiwu Yangzhou, and Vietnam battery modules are successively put into production. It is expected that the module production capacity will exceed 40GW by the end of this year, and the silicon wafer and battery production capacity will continue to be maintained. About 80% of production capacity. That is, the production capacity of silicon wafers and batteries is about 32GW.
Although JA Technology is based on the vertical integration model of the photovoltaic industry chain, its main business has covered silicon rods, silicon wafers, solar cells, solar modules, and photovoltaic system applications. However, it has not been involved in the field of silicon materials, and silicon materials happen to be the most concentrated and upstream field. Even silicon wafer giants such as Longi and Zhonghuan are not involved in the production of silicon materials.
In addition, according to IHS Markit's January 2021 forecast data, the global new installed capacity in 2019 and 2020 will reach 125GW and 138GW, respectively. Global new installed capacity is expected to reach 184GW in 2021, an increase of 33% over 2020.
The huge market demand has caused photovoltaic companies to increase their weight. Starting in 2020, component companies will build production bases across the country. However, after entering 2021, the rise in the price of silicon materials has been transmitted to the downstream links, including the prices of cables, films and inverters have risen slightly. The only price drop was the “hot” photovoltaic glass last year, but it was not enough to offset the impact of rising prices of other materials on module costs.
Of course, if the photovoltaic industry in 2021 wants to surpass last year's level, it still needs silicon materials to "cool down".