ALBAWABA – Chinese giant solar producer Longi slashed prices for a solar energy component in an attempt to overtake intensifying cost competition in the sector in light of growing capacity, Bloomberg reported Tuesday.
Chinese company Longi Green Energy Technology Co. cut wafer prices by as much as 31 percent on Monday.
Wafers are silicon squares that are wired up and pieced together to form solar panels.
Since February 2023, solar silicon prices have plunged by almost half, according to Bloomberg.
Several new factories opened up, ramping up product of the material, the shortage of which disrupted the industry’s supply chain last year.
Longi President Li Zhenguo warned last week that aggressive expansion in the solar supply chain could lead to excess capacity.
Li underlined that such an expansion forces more than half the companies in the industry out of business in the next few years.
Longi shares fell as much as 2 percent in Shanghai on Tuesday. Whereas the shares of TCL Zhonghuan Renewable Energy Technology Co., Longi’s top competitor in the wafer sector, saw little change in Shenzhen, according to Bloomberg.
