By Yifan Wang

LONGi Green Energy Technology Co. said it has signed a polysilicon procurement contract with long-time supplier Asia Silicon (Qinghai) Co., under which it agreed to buy 124,800 metric tons of the material in the next five years.

The solar-power component maker said the estimated value of the contract is 9.50 billion yuan ($1.37 billion), according to current prices of the commodity, a key raw material in solar-energy products.

Specific prices will be negotiated monthly according to market conditions, the firm said.

The contract is expected to last from Sept.1, 2020 to Aug. 31, 2025.

The estimated contract value represents about 41% of LONGi's operating costs in 2019, it added.

Write to Yifan Wang at