Entry Barriers in PV Manufacturing Rise Again

Recently, China’s Ministry of Industry and Information Technology officially released the revised “Photovoltaic Manufacturing Industry Specification Conditions” and “Administrative Measures for Specification Announcements.” Compared with the previous version, the new rules impose higher requirements on minimum capital ratios, key technical indicators, and production energy consumption.

Taking polysilicon as an example, the new specification requires that for newly built or expanded polysilicon projects, reduction power consumption must be below 40 kWh/kg and comprehensive power consumption below 53 kWh/kg.

According to the China Photovoltaic Industry Development Roadmap compiled by the China Photovoltaic Industry Association, the industry average comprehensive power consumption in 2023 was 57 kWh/kg, and reaching 53 kWh/kg was previously expected only around 2028–2029.

However, for domestic polysilicon leader GCL Technology, its early transition from the Siemens process for rod-shaped silicon to the silane fluidized bed process (FBR) for granular silicon has reduced comprehensive power consumption to 13.8 kWh/kg — 74% lower than the latest standard — making it a representative of new-quality productive forces in carbon reduction and energy efficiency within the PV industry.

Moving Toward Innovation: Granular Silicon Breaks Through

Xuzhou, the birthplace of GCL Technology’s PV industry, features towering silane reaction towers with metallic luster and massive blue-clad fluidized bed units. Through the fluidized bed process, silane gas, hydrogen, and silicon seed crystals react at high temperatures to form mung-bean-sized granular silicon.

Before 2023, however, rod-shaped silicon still dominated production.

As a foundational PV raw material, GCL Technology invested in what was then China’s largest polysilicon project in Xuzhou in 2006, using the modified Siemens process. Five years later, GCL became the world’s largest polysilicon R&D and producer, capturing 27% global market share.

At its peak, however, the company foresaw looming challenges. Operating in a region with relatively high electricity prices, cost pressure intensified, and the traditional Siemens process offered limited room for further cost reductions. In 2011, GCL decisively chose a new path — silane fluidized bed granular silicon technology. Despite high technical barriers and industrialization difficulties that had led U.S. companies to abandon the route, GCL remained committed.

From equipment design to lining materials, from reaction timing to startup cycles, and from product quality to application testing, it took ten years to achieve large-scale mass production.

Key milestones included:

• Feb 2021 – Effective capacity increased from 6,000 to 10,000 tons; a 20,000-ton modular project commenced.

• Oct 2021 – Received a carbon-footprint certificate from the French Energy Agency; 37 kg CO₂e/kg set a new global low record.

• Nov 2021 – Xuzhou 20,000-ton project launched; capacity rose to 30,000 tons.

• Jul 2022 – 100,000-ton Leshan project commenced production.

• Dec 2022 – 100,000-ton Baotou project launched, forming a “three-pillar” manufacturing structure.

• Sep 2023 – 120,000-ton Hohhot project completed in just 10 months, setting a global speed record for large-scale polysilicon construction.

After a decade of accumulation, granular silicon emerged powerfully, transforming from concept to industry force.

Quality-Driven Growth and Rapid Market Share Expansion

In 2024, severe supply-demand imbalance plunged the PV industry into a downturn. Despite this, GCL Technology upheld its long-standing principle:
“No matter how tough the times, never cut technology or R&D.”

According to financial reports, R&D investment in H1 2024 reached RMB 718 million, exceeding 8% of revenue, the highest level in company history, strengthening its technological foundation for counter-cyclical growth.

Under strong R&D momentum, granular silicon processes iterated rapidly and product quality improved continuously. Within half a year, the proportion of products with ≤0.5 ppbw five-element total metal impurities rose to 95%, surpassing mainstream N-type dense polysilicon standards.

Manufacturing efficiency also advanced significantly. Nominal granular silicon capacity reached 420,000 tons, fully ramped up, solving unit output issues in less than four years — a pace comparable to or faster than the decade-long growth cycle of the modified Siemens process.

In Q3, granular silicon shipments totaled 80,900 tons. Based on Antaike data showing total industry polysilicon output of 407,000 tons, the apparent market share was about 19.9%. Considering industry inventory accumulation while granular silicon maintained low stock levels, its effective market share likely exceeded 20%.

Industry analysts noted that process excellence, reliable quality, effective cost control, and stable cash flow are key supports enabling GCL Technology to lead the industry through the cycle.

Green Empowerment and a Low-Carbon PV Value Chain

In H1 2024, granular silicon quality reached new levels, with stricter standards approaching electronic-grade control. The proportion of N-type (901A and above) products exceeded 96%, significantly improving crystal pulling efficiency, with all major customers entering the full-adoption stage.

Cost performance also strengthened. System optimization reduced silicon consumption and energy use, and Q3 cash cost fell to RMB 33.18/kg, securing strategic flexibility for future profitability recovery.

From a carbon-footprint perspective, performance remained outstanding. TÜV Rheinland certifications confirmed:

• Baotou base granular silicon “cradle-to-gate” carbon footprint: 41 kg CO₂e/kg-Si

• Equivalent “gate-to-gate” footprint: 16 kg CO₂e/kg-Si

GCL Technology also announced that, marked by the launch of SiRo modules under the GCL Carbon Chain, PV modules fully produced with GCL granular silicon will connect to the world’s first PV carbon chain, offering lifecycle traceability, carbon footprint management, and real-time ESG reporting — guiding the entire industry toward coordinated decarbonization.

An analyst concluded:
“As a representative of new-quality productive forces, GCL’s granular silicon holds a unique and difficult-to-replicate carbon-footprint advantage. Under global carbon-neutrality goals, this advantage will only continue to expand.”

Link：https://mp.weixin.qq.com/s/8WfznX0mu7OjXh7BgCkxKA