On January 16th, LONGi Green Energy Technology Co., Ltd. released its full-year performance forecast for 2024. The report highlights the impact of intensified industry competition, declining prices and gross profit margins for PERC and TOPCon products, and reduced capacity utilization due to technological advancements. Additionally, asset impairment provisions have risen, and investments in polysilicon enterprises have incurred losses. These factors have contributed to LONGi’s anticipated year-on-year decline in performance.
The photovoltaic (PV) industry is currently facing cyclical challenges, with many companies expected to report losses. LONGi’s strategic adjustments aim to navigate these difficulties and position the company for future growth.
Industry Challenges and Strategic Adjustments
As early as May 2023, during the SNEC Exhibition in Shanghai, Li Zhenguo, founder and president of LONGi, addressed the industry’s capacity-demand mismatch. He predicted that many PV manufacturers might exit the market within the next two to three years. In response, LONGi has adopted a proactive strategy to prepare for the industry’s downturn.
Li Zhenguo stated, “The imbalance between output and demand in 2025 should be much better than in 2024. 2024 is precisely the year with the most intense adjustments. Concepts need to be changed, and past views need to be taught a lesson.”
Despite these challenges, the global PV market continues to grow. The China Photovoltaic Industry Association (CPIA) has revised its 2024 forecast for global new PV installations upward to 430-470GW, driven by strong demand in major markets and emerging regions like Latin America and the Middle East.
Government Support and Technological Innovation
The Chinese government is actively supporting the PV industry through initiatives aimed at promoting self-regulation, technological innovation, application market expansion and integration of industries. These efforts are expected to help the industry overcome current challenges and achieve breakthroughs.
LONGi remains at the forefront of technological advancement. In October 2023, the company launched the Hi-MO X10 module, based on HPBC 2.0 cell technology, with a mass production power of 670W and an efficiency of 24.8%. This product reinforces LONGi’s commitment to differentiated innovation, following the release of the Hi-MO 9 module earlier in the year.
Expanding BC Production Capacity
Zhong Baoshen, Chairman of LONGi, emphasized the company’s focus on BC technology: “The company is accelerating the construction of BC production capacity through various models such as technology licensing and equity cooperation to meet urgent market demand. LONGi’s BC products are expected to ramp up production in 2025, with a planned capacity of 50GW by the end of that year.”
In November 2024, LONGi signed a strategic cooperation agreement with Yingfa Deyao Technology Co., Ltd. and Yibin Hi-Tech Zone for a 16GW HPBC cell project. Under this agreement, LONGi will initially handle product sales, with the joint venture later permitted to sell externally, subject to technology licensing fees.
A Forward-Looking Strategy
LONGi’s approach to technological iteration has set it apart from competitors. From pioneering PERC technology to focusing on BC innovation, the company has consistently led the industry. By licensing BC technology, LONGi aims to strengthen its intellectual property moat, avoid the disorderly expansion seen with TOPCon, and rapidly increase BC market share through asset-light operations.
Zhong Baoshen added, “There are many ways to reduce costs for BC in the future. The application of base metals is a critical direction for cost reduction, and LONGi has significant technical expertise in this area. The company’s production and sales coordination has improved rapidly, accelerating the progress of BC second-generation products. LONGi’s ‘coldest days’ are behind us, and we are confident about the future.”
Through strategic innovation and market adaptation, LONGi is well-positioned to overcome current challenges and maintain its leadership in the global PV industry.
