Solar panel manufacturer Yingli Green Energy Holding Company Limited YGE or “Yingli Solar” signed an agreement with LONGi Silicon Materials Corp. ("LONGi") to jointly manufacture monocrystalline silicon wafers, ingots, solar cells and solar panels.

Rationale Behind the Partnership

Yingli Solar will be able to incorporate LONGi's highly competitive technology into its production lines, while monocrystalline silicon manufacturer LONGi could expand into solar panel assembly. Thanks to the partnership, LONGi will also supply high quality monocrystalline wafers to Yingli at a competitive price.

In addition, both Yingli Solar and LONGi will cooperate and utilize their respective manufacturing capacities, technologies and resources across the full monocrystalline value chain, from monocrystalline ingots and wafers to solar cells and panels to churn out better quality products.

Future Goal of the Partnership

Yingli Solar and LONGi have agreed to promote high-efficiency monocrystalline solar application markets both at home and abroad and utilize monocrystalline modules for their self-developed power plants. The partners might also explore the possibilities of jointly developing a monocrystalline silicon ingot plant.

This strategic partnership will efficiently cater to the rising demand for high-performing, cost-effective monocrystalline PV solutions in the global market.

Solar Electricity Usage on the Rise

The demand for solar energy based electricity is on the rise on a global scale, with countries like China and India having set big targets of producing electricity from solar energy. Chinese solar developers have been cutting deals and developing assets abroad to tap the growing demand.

China-based Trina Solar Ltd TSL announced it would invest nearly $500 million to develop a plant in India. The solar products manufactured in this plant will be exported to the U.S. and Europe to bypass the sanction on solar shipments from China.

Recently, solar module producer JinkoSolar Holding Co., Ltd. JKS has entered into a supply agreement with Vivint Solar VSLR, a leading provider of distributed solar energy to residential customers in the U.S.   

Per the agreement, Vivint Solar will utilize JinkoSolar’s high efficiency modules to serve its customer base, with both parties benefiting from the expanding U.S. residential solar market.

Yingli Green Energy currently has a Zacks Rank #4 (Sell).

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