Longi Replaces Silver in Solar Cells to Combat Soaring Costs

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AuthorAnanya Iyer|Published at:
Longi Replaces Silver in Solar Cells to Combat Soaring Costs
Overview

Chinese solar giant Longi Green Energy Technology will swap silver for base metals in its solar cells, starting Q2 production. This strategic move aims to slash manufacturing costs amid record silver prices and fierce industry competition, potentially lowering solar module prices.

Solar Giant Longi Ditches Silver

Longi Green Energy Technology Co. is set to replace silver with base metals in its solar cells. Mass production of these cost-reduced products is slated to begin in the second quarter. This decision comes as surging silver prices exert significant cost pressure on manufacturers already navigating intense market competition and substantial losses.

Accelerating Industry Trend

The solar industry has been actively seeking to minimize silver usage. Record-high silver prices, driven by safe-haven demand amidst geopolitical unrest and anticipation of Federal Reserve interest rate cuts, have accelerated this transition. Silver's share in solar module production costs has reportedly climbed to 14%, up from 5% just two years ago, according to BloombergNEF.

Technological Advantage

Longi specializes in back-contact (BC) solar cells, a technology that captures more solar energy. While these cells hold a smaller market share compared to mainstream TopCon technology, the company noted in May that silver is easier to substitute with base metals in BC cells. This shift is projected to cut costs by approximately 0.02 yuan per watt.

Market Focus

Beyond this cost-saving measure, Longi also indicated its new energy storage business will target markets including domestic China, Europe, the United States, and Australia. The company's strategic adjustments underscore the challenging economic environment within the global solar sector.

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