GCL Technology has reduced granular silicon production costs by 15% to CNY28.17 ($3.87)/kg in the fourth quarter of 2024, compared to CNY33.18 in the previous quarter.
GCL Technology Holdings Ltd., a Hong Kong-listed Chinese polysilicon manufacturer, has announced the latest developments in its granular silicon business.
In the fourth quarter of 2024, GCL produced 70,900 tons of granular silicon and sold 74,600 tons, reducing cash costs by 15% to CNY28.17/kg, compared to CNY33.18 in the third quarter. For the year, GCL produced 269,200 tonnes and shipped 281,900 tonnes, while silicon inventories steadily declined.
Figures from the Silicon Branch of the China Nonferrous Metals Industry Association (CNMIA) show that recent polysilicon prices range between CNY37/kg and 42.5/kg, with granular silicon trading at CNY36/kg to 38/kg . In comparison, Daqo Energy reported a unit cash cost of CNY 38.93/kg in the third quarter, while Xinte’s half-year report reported a cost of about CNY 48/kg, and other Siemens process manufacturers about CNY 40/kg reported. These figures highlight GCL’s cost and margin advantages in granular silicon production.
The cost reductions are in line with GCL Chairman Zhu Gongshan’s pledge at the company’s 2024 interim results briefing, where he predicted that the cost of granular silicon would fall below CNY30/kg after September 2024 due to technological advances and rapid capacity expansion . A GCL representative confirmed this pv magazine that production costs have now fallen below retail prices, indicating an end to losses in the polysilicon sector.
GCL attributed the lower costs to improved manufacturing processes, optimized equipment configurations, balanced production cycles and lower energy consumption. As downstream customers increasingly adopt granular silicon, the retail price has surpassed the prices of dense n-type materials and is approaching that of high-quality n-type refeed materials.
As of January 2025, GCL’s silicon production capacity is 460,000 tons, of which 220,000 tons are spread over two bases in Inner Mongolia, 100,000 tons in Leshan, Sichuan and 140,000 tons in Xuzhou, Jiangsu – all upgraded to granular silicon. GCL has also announced plans for its first overseas silicon plant in the United Arab Emirates and has held talks with Saudi Arabia for a 120,000 tonne per year silicon plant.
Industry analysts believe that GCL’s cost-cutting measures will strengthen its competitive advantage and accelerate the replacement of aging silicon capacity.
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