Xinjiang Daqo New Energy [DQ:US], a Chinese energy equipment company, has established a strategic partnership deal with the northern Chinese city of Baotou to enhance polysilicon, silicon metal, and silicone capacity, as reported by Sina Finance on December 20. The deal is in part driven by Baotou city’s strategic plan to leverage its strong industrial capacity and rich energy resources and play a key role in China’s carbon neutrality transformation. Daqo plans to invest RMB33.25bn in the deal to build polysilicon projects for the solar energy sector with an annual production of 200,000 tons and silicon metal projects in Baotou with an annual output of 300,000 tons. The government of Baotou will monitor the projects’ energy use, operational safety, and environmental performance, as well as provide prioritized green energy access to Daqo within the city’s jurisdiction.
Polysilicon is the solar energy industry’s primary raw ingredient, with Daqo placing second in global polysilicon output in 2020 and accounting for 19.52% of domestic polysilicon production, according to China Photovoltaic Industry Association. Daqo was founded in 2011 and specializes in research and development, manufacture, and distribution of high-purity polycrystalline silicon, which is mostly utilized in the solar industry. Since launching high-purity polycrystalline silicon projects with 35,000 tones of annual output in 2H19, Daqo has increased its yearly output to 70,000 tons.