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Longi Green Energy Slashes Wafer Prices, Fueling Solar Price War

1/ Longi Green Energy Technology, the world's largest solar manufacturer, slashed wafer prices by up to 31% in response to intensifying cost competition.

2/ This reduction comes as solar silicon prices dropped nearly 50% since early Feb due to increased production and material shortages (due to supply chain disruption).

💰 Estimated Cost Savings: Unquantifiable. Raw Material Cost ~75% – ~80% of operating cost/~56% - ~59% of operating revenue. Thus, a massive 1/3rd fall in material cost

💼 Cost Optimisation Impact:

1/ While this move benefits consumers with more affordable solar panels, it could intensify cost competition among manufacturers and potentially impact their profit margins.

2/ Longi's move reflects the growing concern about excess capacity in the solar industry, with its president warning that it could lead to closure of over half companies in the sector.

Country: China

🏢 Company: Longi Green Energy Technology Co., Ltd.

🛍️ Industry: Photovoltaics

💼 Cost Element: Raw Material Cost

🔍 Nature: Opex

🔢 Cost Classification: Variable Cost



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