NewsGlobalLONGi Green Energy to Replace Silver with Base Metals in Solar Panels to Cut Production CostsLONGi Green Energy to Replace Silver with Base Metals in Solar Panels to Cut Production Costs
LONGi Green Energy Technology announced plans to replace silver with base metals in solar cell production starting in the second quarter, responding to record-high silver prices that now represent 14% of solar module costs versus 5% two years ago. The company's back-contact solar cell technology enables this transition more easily than conventional approaches, potentially reducing costs by 0.02 yuan per watt. LONGi also plans to focus its energy storage business on China, Europe, the US, and Australia markets.
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LONGi Green Energy Technology Co. has announced a significant shift in its solar panel manufacturing process, moving away from silver to base metals in its solar cells as the industry grapples with surging precious metal costs and intense market competition. The Chinese solar manufacturer expects to begin mass production using this new approach in the second quarter.
Cost Reduction Strategy
The transition to base metals represents a strategic response to mounting cost pressures in the solar industry. According to the company's Monday filing, this change will help "further lower the costs of solar modules," though specific details about the base metals being used were not disclosed.
| Cost Impact: | Details |
|---|---|
| Potential Savings: | 0.02 yuan per watt |
| Production Timeline: | Second quarter mass production |
| Technology Type: | Back-contact solar cells |
Silver Price Impact on Solar Industry
The solar sector has been significantly affected by record-high silver prices, driven by safe-haven demand amid geopolitical tensions and Federal Reserve interest rate cuts. The financial impact on manufacturers has been substantial, with silver costs representing a much larger portion of production expenses than in previous years.
| Silver Cost Analysis: | Current | Two Years Ago |
|---|---|---|
| Share of Production Costs: | 14% | 5% |
| Price Trend: | Record highs | Lower levels |
Technology Advantage
LONGi's back-contact solar cell technology provides a competitive advantage in implementing this transition. Unlike most competitors who use the mainstream TopCon approach, the company's back-contact cells generate more power from the same amount of sunlight and are more suitable for silver replacement with base metals. This technology, while holding a smaller market share compared to conventional methods, offers greater flexibility for material substitution.
Energy Storage Business Expansion
Beyond solar panel manufacturing improvements, LONGi outlined its strategic focus for energy storage business development. The company plans to concentrate on several key markets for this segment of its operations.
| Target Markets: | Focus Areas |
|---|---|
| Domestic: | China |
| International: | Europe, US, Australia |
| Business Segment: | New energy storage |
Industry Context
The move reflects broader industry trends as solar manufacturers seek alternatives to expensive materials while maintaining product performance. The combination of intense competition, deep losses across the sector, and rising input costs has accelerated innovation in manufacturing processes and material selection across the solar industry.
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