Roth Capital Partners, The US Customs and Border Protection (CBP) may have banned Longji solar modules made of Tongwei polysilicon from entering the US market under the so-called Xinjiang-related bill.
In addition, modules made using Tianneng (Chint) polysilicon have been withheld and are under review under UFLPA, according to PV magazine. The UFLPA requires importers to provide evidence that the supply chain is free of forced labor practices. Allegations
about the bill have always been nonsense.
By the end of 2022, Tongwei has become the world's largest polysilicon supplier, with an output of more than 345,000 tons, but there are no factories in Xinjiang for the time being.
Previously, the ban on related products was limited to Xinjiang, and it is not clear whether this incident means that the ban has begun to spread to other parts of China.
Banning the use of Tongwei polysilicon in the production of Longji batteries could mean "securing a ban on Chinese polysilicon," an American photovoltaic industry insider told PV magazine.
According to previous data from Bernreuter Research, "by 2022, China's solar-grade polysilicon production will account for 89% of global production, and the expansion trend continues".
In this regard, Longji may appeal against the import restrictions, but the appeal process may take months, or will have an impact on its supply chain in the United States.
According to Bernreuter Research's analysis of the US Customs and Border Protection (CBP) detention statistics related to UFLPA in 2022, there have been about & nbsp; Solar PV modules for 2G W were seized at the US border in 1,423 shipments with a total value of $709.9 million. In January-February
this year, another 204 shipments were seized, with an installed capacity of 410 megawatts and a value of $134 million.
To avoid UFLPA review, the company must provide a complete supply chain list of the product and a list of all workers in the factory to prove that no workers are forced to work.
According to Wood Mackenzie, the US solar market will triple in size in the next five years, with a total installed solar capacity of 378 gigawatts by 2028. Under the
huge market demand, the US government has been trying to establish a complete photovoltaic industry chain in China. To this end, the relevant policies have been continuous, only recently there have been two financial subsidies of more than $81 million flowing to components, perovskite and other fields.
Although the United States has never abandoned the construction of the domestic photovoltaic industry chain, from the results, the doubts about whether the relevant enterprises can continue to provide products to meet their domestic installed demand have not disappeared.
Module assembly has a strong presence in the United States, but production plans for ingots, wafers and cells have not kept pace, and there are no plans to build new polysilicon plants, a concern echoed by the Clean Energy Association (CEA).
CEA predicts that by 2027, the United States will achieve 17 GW of polysilicon, 3 GW of silicon rods, 3 GW of silicon wafers, 18 GW of batteries and 40 GW of module manufacturing capacity. The
huge supply gap means that the United States will continue to rely on imports of related photovoltaic products in the coming years.
However, recent developments in UFLPA enforcement may pose a serious challenge to its domestic downstream players in finding suppliers.
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