JinkoSolar shored up aspects of its supply chain last week. JinkoSolar Holding Co., signed a “strategic cooperation agreement” with Tongwei Co., Ltd. to jointly invest in a high-purity crystalline silicon project with annual capacity of 45,000 metric tons and a silicon wafer project with an annual production capacity of 15GW, as well as develop a more extensive industrial chain cooperation. They also signed a solar glass procurement contract with Flat Glass Group Co. for approximately 338 million square meters of rolled glass to support the production of 59 GW of JinkoSolar’s high-efficient solar modules for three years from 2021 to 2023.
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On the Tongwei Co. deal … According to the agreement, JinkoSolar will own a 35% equity stake in the 45,000 tons high-purity crystalline silicon project, while Tongwei will hold a 30% equity stake in the 15GW silicon wafer project. Under the industrial chain cooperation, the production capacity and products of the joint venture for the high-purity crystalline silicon will be given priority to meet the production needs of the joint venture silicon wafer company. Wafer products produced under the jointly invested silicon wafer project will be cost effective and price competitive.
In addition, based on the previous procurement contract for 93,000 metric tons of polycrystalline silicon, JinkoSolar will supply Tongwei with a total of approximately 6.5GW of silicon wafer products for three years.
“Tongwei has always been an important strategic partner of JinkoSolar,” stated Kangping Chen, CEO of JinkoSolar. “Our Company has a vertically integrated production capacity with cumulative module shipments exceeding 70 GW by the end of 2020. This strategic cooperation will benefit two companies from different segments of the solar industrial chain and strengthen resource sharing and integration within the PV industry, as well as increase industry leadership and dominance of both parties, and jointly create a win-win manufacturing ecosystem.”