LONGi Green Energy Technology Co. Ltd. Navigates a Turning Point in the Solar Industry

The Chinese solar‑technology manufacturer, listed on the Shanghai Stock Exchange under the ticker LONGi, has been at the center of a series of developments that could reshape its market position and the broader photovoltaic (PV) value chain. Recent data shows that the company’s share price closed at ¥18.19 on 11 December 2025, a modest decline from its 52‑week high of ¥23.57 and a notable rise from the low of ¥14.01 set in early April. With a market capitalisation of approximately 137 billion CNY, LONGi remains a major player in the global silicon‑based solar market.

1. Stabilised US Module Prices Amid Regulatory Uncertainty

According to a report published by PV‑Tech.org on 12 December 2025, U.S. solar PV module prices have steadied at just above US$0.28 per watt over the November period. This plateau follows a sharp rise from about US$0.25 per watt in January, driven by developers’ ramp‑up activities. However, the report cautions that the stability is fragile, as a Section 232 compliance review looms over the U.S. solar sector. For LONGi, whose manufacturing footprint is largely concentrated in China, the potential imposition of tariffs on imported silicon wafers and modules could alter competitive dynamics. A sustained U.S. price ceiling could dampen demand for new installations, indirectly affecting LONGi’s export volumes.

2. Supply‑Side Reform in China’s Photovoltaic Sector

On the same day, a Chinese news portal (stock.eastmoney.com) highlighted a historic development: the founding of Beijing Guanghe Qiancheng Technology Co., a platform company created by 17 leading silicon and PV firms, including Tongwei, GCL‑Poly, and other industry giants. The entity aims to consolidate polysilicon production capacity, signalling the end of “involution” in the sector and the acceleration of supply‑side structural reform. The platform intends to cap its retained silicon capacity at 1.5 million tonnes and promises flexible shareholding arrangements among shareholders.

This consolidation bears directly on LONGi’s supply chain. As a producer of monocrystalline silicon ingots, wafers, and cells, LONGi’s access to raw materials and its competitive pricing are tightly linked to the broader silicon market. A more coordinated supply structure may reduce input cost volatility, allowing LONGi to stabilise its manufacturing margins and potentially pass savings onto customers.

3. Rising Momentum in the Photovoltaic Index

The Chinese Photovoltaic Industry Index (931151) surged by 1.78 % on 12 December 2025, reflecting a broader bullish sentiment across the sector. Several key constituents—such as Junda (002865), TBEA (600089), and Luzhou Technology (300757)—reported gains between 5.9 % and 7.6 %. The photovoltaic ETF (516180), which tracks this index, rose 1.67 % and traded at ¥0.79 per share. This collective uptick underscores investor confidence in PV companies’ growth prospects, a sentiment that is likely to buoy LONGi’s valuation, especially given its robust product portfolio that spans from monocrystalline silicon ingots to finished solar cells.

4. Long‑Term Outlook and Strategic Implications for LONGi

The convergence of stabilised U.S. module prices, supply‑side reforms in China, and a rally in PV sector indices suggests a cautiously optimistic trajectory for LONGi:

  • Cost Management: With a more predictable silicon supply, LONGi can focus on cost optimisation in wafer and cell fabrication, potentially improving its price‑to‑earnings ratio, which currently stands at a negative -24.91 due to high capital expenditures and fluctuating commodity prices.

  • Export Dynamics: While U.S. tariff uncertainty remains a risk, the overall global push for renewable energy—evidenced by the growing adoption of lithium‑ion batteries and energy storage systems (as reported in other market analyses)—creates new opportunities for integrated PV‑storage solutions. LONGi could leverage its monocrystalline silicon technology to supply high‑efficiency modules for such systems.

  • Competitive Positioning: The consolidation of polysilicon producers may reduce oversupply in the market, tightening competition on price. LONGi’s focus on high‑grade monocrystalline silicon could allow it to maintain a premium pricing strategy, especially as the global demand for high‑efficiency cells continues to climb.

5. Conclusion

LONGi Green Energy Technology Co. Ltd. stands at a pivotal juncture. The stabilization of U.S. module prices, coupled with structural reforms in China’s silicon supply chain and a buoyant PV market sentiment, creates a landscape where strategic cost control and product differentiation will be paramount. While regulatory headwinds loom, the company’s diversified product range and established manufacturing base position it well to navigate the evolving energy transition, potentially translating into sustained growth and shareholder value.