Daqo New Energy Corp. (NYSE: DQ) jumps around 9% to $52.29 in early trading session on Tuesday as the firm released that its subsidiaries XinjiangDaqo and Inner Mongolia Daqo have signed a five-year high-purity polysilicon supply agreement with a leading Chinese solar manufacturing company.

From January 1, 2023 to December 31, 2027, Xinjiang Daqo and Inner Mongolia Daqo will provide this premier manufacturing business with a total of 46,200 MT high-purity mono-grade polysilicon. Actual rates will be discussed monthly by both parties based on market conditions.

“We are very pleased to announce another long-term high-purity polysilicon supply contract this month,” said Mr. Longgen Zhang, CEO of Daqo New Energy. “We see a very clear trend that solar PV energy will play an increasingly important role globally, and our downstream customers are rapidly expanding their capacities, which will strongly support the demand for high-purity mono-grade polysilicon.”

Daqo New Energy Corp. (NYSE: DQ) announced that its subsidiaries Xinjiang Daqo and Inner Mongolia Daqo had signed a five-year high-purity polysilicon supply agreement with Shuangliang Silicon Materials (Baotou) Co.,Ltd., a subsidiary of Shuangliang Eco-Energy (SH:600481) (“Shuangliang”) to supply its fast growing solar wafer business.

Under the supply agreement, Xinjiang Daqo and Inner Mongolia Daqo will provide Shuangliang with a total amount of 150,300 MT high-purity mono-grade polysilicon from November 2022 to December 2027. Actual prices will be negotiated by both parties monthly according to market conditions.

Mr. Longgen Zhang, chief executive officer of Daqo New Energy, commented, “This five-year polysilicon supply agreement will strengthen our cooperation with Shuangliang, an outstanding solar wafer producer with very rapid capacity expansion plans. We expect that the demand for high-purity mono-grade polysilicon to remain strong, especially as the market gradually switches to the next generation of N-type technology. “