As of now, 14 companies in the industry are undergoing maintenance or load reduction, and it is expected that one company will achieve production capacity expansion this month, injecting new vitality into the market. The power restrictions in Sichuan have been effectively resolved, and the affected production capacities are actively resuming operations, which is expected to result in significant output growth. Specific data shows that in August, polysilicon production reached 130,000 tons, which corresponds to the production of approximately 59 to 62 GW of modules. The production forecast for September is expected to further increase to about 135,000 tons (equivalent to 61 to 64 GW of module production), a month-on-month growth of about 4%.
New polysilicon production capacity projects:
Baofeng Energy: On November 17, 2023, Baofeng Energy's polysilicon upstream and downstream integration project in Guazhou, Gansu, began operations. The first phase of the project includes an annual production capacity of 50,000 tons of polysilicon and 2.5 GW of crystal pulling and wafer slicing.
Hoshine Silicon: In January 2024, the company’s first 100,000-ton high-purity polysilicon production line will achieve mass production. Another 100,000-ton production line is in the final preparation stages for mass production, with joint testing expected to begin in February 2024.
Planned new polysilicon production capacity:
Daqo New Energy: On December 14, 2023, the company announced an investment of RMB 15 billion in Shihezi to build 100,000 tons of polysilicon and supporting silicon material capacity. Phase one involves an investment of RMB 7.5 billion for an annual output of 50,000 tons of polysilicon, 150,000 tons of industrial silicon, and 1.2 million silicon rods. Phase two will invest another RMB 7.5 billion for the same output.
Baofeng Energy: On December 20, 2023, the environmental impact assessment report for the second phase of Baofeng Energy's polysilicon project in Guazhou, Gansu, was submitted. Phase one includes an annual output of 150,000 tons of industrial silicon, 50,000 tons of polysilicon, 2.5 GW of crystal pulling and wafer slicing, 2.5 GW of cells, and 2.5 GW of modules.
Tongwei Co., Ltd.: On December 25, 2023, the company announced an investment of RMB 28 billion to build a green material integrated project in Ordos, including an annual output of 500,000 tons of industrial silicon and 400,000 tons of high-purity polysilicon. The project will be implemented in two phases. Phase one involves an investment of RMB 13 to 14 billion for 200,000 tons of industrial silicon and 200,000 tons of high-purity polysilicon. Phase two will involve the construction of 300,000 tons of industrial silicon and 200,000 tons of high-purity polysilicon.
Risun Group：On March 27, 2024, Risun Group will begin construction on an integrated crystalline silicon photovoltaic project in Baotou, which includes an annual production capacity of 150,000 tons of industrial silicon, 120,000 tons of polysilicon, 40 GW of wafers, 10 GW of cells, and 5 GW of modules, with a total investment of RMB 25.4 billion.
Delayed polysilicon capacity projects:
Daqo New Energy: On October 30, 2023, the company announced that the second phase of its 200,000-ton high-purity polysilicon project, originally scheduled for completion by the end of 2023, would be delayed until the second quarter of 2024.
Jolywood (Taizhou) Solar Technology: On February 7, 2024, the company announced that its project for an annual production capacity of 200,000 tons of industrial silicon and 100,000 tons of high-purity polysilicon has been temporarily halted, and there is uncertainty regarding the successful construction of the project.
Shutdown of existing polysilicon capacity:
Norwegian Crystals: In 2023, the company announced it would cease its polysilicon business and filed for bankruptcy.
Norsun: In 2023, the company announced it would cease its polysilicon business and shift production to the U.S.
REC Silicon: On November 22, 2023, REC Solar announced the closure of two polysilicon plants in Norway, with a combined capacity of 7,000 tons, due to high electricity prices.
Transfer of existing polysilicon capacity:
TCL Zhonghuan: The company plans to transfer 27% of its stake in Xinjiang Goines, a polysilicon company, to GT Trust for RMB 697 million. The commercial handover conditions for the share transfer have been met. Xinjiang Goines' controlling shareholder is Jiangsu Zhongneng Silicon Industry, with a production capacity of 65,000 tons in 2022.
REC Silicon: In July 2023, REC Silicon listed its 15% stake in Tianhong Ruike for sale at RMB 1.025 billion. Tianhong Ruike’s controlling shareholder is Shaanxi Nonferrous, with a granular silicon capacity of 18,000 tons in 2022.
REC Solar Norway AS: In January 2024, India's Reliance Industries acquired 100% of REC Solar Norway AS from Norway's Elkem ASA for USD 22 million.
Source：https://mp.weixin.qq.com/s/xuAGyRK4IGXpo59wtQwXKQ
