(Bloomberg) Daiwa Capital Markets analyst Dennis Ip projects record low polysilicon prices in 2023, amid several projects coming up in China to address shortage.
IP’s comments come when China is allocating billions to build new factories for polysilicon production, with the global capacity having improved by more than 25% in the last two months.
The analyst expects the polysilicon prices to remain elevated during the first half of 2022, with the upcoming projects expected to take costs of solar modules lower.
BOCI Research Ltd analyst Tony Fei says the multi-billion-dollar growth in polysilicon capacity will tame key bottlenecks in the supply chain.
China’s ramped-up polysilicon production is also related to its goals to address the impacts of climate change, with Fei expecting the increased solar panel production to greatly decarbonize the energy mix.
Solar companies are expected to generate sufficient polysilicon by the end of the year for at least 500 gigawatts capacity, compared to around 144 gigawatts that were installed in 2020. About 455 gigawatts are needed every year up to 2030 for the avoidance of catastrophic impacts of climate change.
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