Longi pushes ahead despite oversupply woes

Longi powers through solar oversaturation with new factory: China’s privately owned solar PV manufacturer Longi Green Energy Technology signed an agreement with Yingfa Group to build a 16 GW solar cell plant in Yibin, Sichuan, despite experiencing losses for four consecutive quarters, Bloomberg reported on Thursday, citing a government statement. The amount invested has not been disclosed.

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About the plant: The Yibin solar plant will manufacture back contact (BC) cells which can yield more power from the same amount of sunlight. Phase one of the project is set for 2025 inauguration with a 6 GW annual capacity. BC cells are not common yet, but Longi expects the technology will gain popularity over the next five years.

The company is optimistic despite the numbers: Longi was overtaken as the world’s most valuable solar energy company by China’s Sungrow in March as price drops narrowed the margins for panel component manufacturers. Earlier this year, the company saw a sharp decline in value, dropping more than 70% from its peak in 2021 due to rapid industry expansion outpacing demand.

China’s Trina Solar to sell its US facilities to US-based Freyr: Freyr Battery entered an agreement to acquire Chinese giant solar panel maker Trina Solar’s manufacturing assets in the US, including its newly operational 5 GW facility in Wilmer, Texas, according to a press release from Wednesday. The transaction, valued at USD 340 mn, is expected to close by the end of 2024, pending regulatory approvals. Freyr is expected to ramp up operations in Wilmer to reach full production by 2025, backed by firm US customer contracts.

Increased US scrutiny into Chinese companies prompted the sale: Trina Solar agreed to the sale following increased US concerns over Chinese companies benefiting from clean energy tax incentives under President Joe Biden's climate policy, Bloomberg reported. Trina will retain a minority stake in Freyr post-sale.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• USD 475 mn loans secured for Li-Cycle: The US Department of Energy finalized a USD 475 mn loan for metals recycler Li-Cycle Holding to build a lithium battery recycling facility in New York. The factory is seen as critical to bolstering the domestic EV supply chain, a key goal for the Biden Administration — which is currently rushing to close loans and approve projects before Donald Trump enters office. (Reuters)
• Vulcan halts German lithium plant: Vulcan Energy Resources is delaying its plans for a large-scale lithium hydroxide plant in Germany from 2025 to 2027 due to delays in the financing process. The project — set to cost EUR 1.9 bn — aims to supply 24k tons of lithium hydroxide annually, enough for batteries for 500k EVs. (Reuters)