In a meeting with investors via the virtual platform on May 23, Chinese polysilicon supplier TBEA said its holding subsidiary operating in Inner Mongolia has completed a new production line with a production capacity of 100,000 tons per year for high-purity polysilicon. Furthermore, the phase 1 of a project in Zhundong for manufacturing electronics-grade polysilicon has entered the construction phase. The project in Zhundong adopts green and low-carbon technologies so as to promote the development of a circular economy. The phase 1 is expected to be completed within the middle of this year. Taking account of the existing capacity expansion activities, TBEA estimates that its total production capacity for polysilicon-related products will reach 300,000 tons per year by the end 2023. The investor meeting was first reported by other Chinese news outlets.

Currently, the funding for the two aforementioned projects comes from TBEA itself. As for other projects, TBEA will be finance them through bank loans and other means. TBEA also said that it is on schedule with its capacity expansion activities. The funding for the phase 1 of the Zhundong project will be in place following the issuance of the company’s new A-shares.

Governed mainly by the supply-demand dynamics, polysilicon prices are expected to fall as suppliers activate new production capacity. Previously, prices were high because supply was tight. TBEA will be optimizing the layout and process technologies of the phase 1 of the Zhundong project. The date for the initiation of the phase 2 will follow the completion of the phase 1 and the result of the optimization. Once the Zhundong project enters operation, the company’s total production capacity will reach 400,000 tons per year.