Canadian Solar to Extend Cell & Module Manufacturing Factory in China

With a capacity of 200,000MT of high-purity polysilicon, 10GW of cells and modules, and multiple GW of raw and auxiliary material production, Canadian Solar intends to construct an integrated PV manufacturing factory in Western China.

By the end of 2027, the 8.87 trillion US dollar ($60 billion) project will be situated in Qinghai province’s Haidong Zero-Carbon Industrial Park.

The factory’s anticipated the following output is as follows:
250,000 metric tons of industrial silicon
200,000 metric tons of high-purity polysilicon
50GW of monocrystalline silicon rods
50GW of crucibles
10GW of monocrystalline silicon slices
10GW of photovoltaic cells
10GW of photovoltaic modules
10GW of supporting new materials per year

According to Wang Huajie, Deputy Secretary of the CPC Haidong Municipal Committee and Mayor, the project, which is divided into eight sub-projects, has drawn the biggest investment amount and is of the largest scale of any in Haidong City in recent years.

The municipal government of Haidong City in the Qinghai Province and Canadian Solar have entered into an investment agreement, which will be used to build the first facility for the Industrial Park later in 2022. This facility will have an annual capacity of about 50,000MT of high-purity polysilicon. Production at the facility is anticipated to start in the middle of 2024.

According to Shawn Qu, Chairman and CEO of Canadian Solar, “We are excited to further expand the level of vertical integration of our manufacturing capability by adding polysilicon production capabilities.”

“This will enable us to better manage expenses, technology, and product quality, enhancing our ability to set prices and increase margins. Additionally, clean energy accounts for around 90% of Qinghai’s installed power capacity. Given the high energy requirement for producing polysilicon, having our solar manufacturing facilities in Qinghai will significantly lower the carbon footprint of our goods.

The project is anticipated to employ roughly 20,000 people and generate yearly invoiced sales of about 120 billion yuan.

According to reports, Qinghai province has excellent cross-regional power transmission conditions as well as tremendous PV power deployment potential.

In order to lessen its susceptibility to price volatility, Canadian Solar previously introduced a new PV production plan that involved internalising more upstream capacity. The company’s manufacturing section, CSI Solar, would have more control over costs, technology, and product quality if it were to become more vertically integrated.