Recently, the 19th (2026) International Photovoltaic Power Generation and Smart Energy Conference & Ehibition (SNEC). During the event, Lan Tianshi, Co-CEO of GCL Technology Holdings Limited (hereinafter referred to as 'GCL Technology'), was interviewed by media outlets including the Securities Daily. He stated: “Facing a new round of in-depth strategic transformation, the company will focus on cultivating a second growth curve and reduce PV product revenue to 20% of total revenue within three years.”

Behind this determination lies GCL Technology’s strategic leap from being a single-product champion in granular silicon to becoming a global multi-product new energy materials platform.

Betting on the Lithium Iron Phosphate Sector

Why is GCL Technology placing all its bets on the lithium iron phosphate sector in this transformation?Lan Tianshi used a set of intuitive figures to outline GCL Technology’s revenue structure transformation path for the next three years. Based on the current price of polysilicon at 40,000 yuan per ton, annual revenue from 200,000 tons of shipments would amount to only about 8 billion yuan. In contrast, with lithium battery materials (LFP) priced at the current 70,000 yuan per ton and assuming a production capacity of 300,000 tons, annual revenue could reach approximately 21 billion yuan. If lithium battery material capacity is subsequently expanded to the 1 million-ton level, the revenue share from polysilicon would fall below 10%.

GCL Technology’s confidence in entering the lithium battery sector stems from its forward-looking strategic planning over the past seven years. Lan Tian Shi revealed that the company initiated R&D on lithium iron phosphate as early as 2019, adopting a physical iron oxide process distinct from the mainstream ferrous oxalate method. According to reports, this process features a streamlined workflow and embodies green manufacturing attributes such as low investment, low costs, low energy consumption, and zero emissions. Its fourth-generation and later products demonstrate significant comprehensive advantages over traditional processes in core metrics such as packing density, capacity, and voltage platform. A recent research report by Huatai Securities noted that GCL Technology’s cost per ton is 1,600 to 2,000 yuan lower than that of traditional lithium iron phosphate methods.

On the product front, GCL Technology has bypassed the highly competitive 'red ocean' market of second- and 2.5-generation lithium iron phosphate and is focusing directly on high-density, high-end products. “The company’s fifth-generation high-density lithium iron phosphate C18 product has been submitted for testing to six leading power and energy storage companies, and has passed all validations. Only three companies in China are capable of mass-producing high-density lithium iron phosphate,” said Lan Tianshi.

It is worth noting that GCL Technology’s business model also differs from that of traditional lithium battery material companies. The company employs a downstream 'lithium-locked' toll manufacturing model, thereby mitigating the risks associated with volatile lithium price fluctuations. Payment terms have also been compressed from the industry standard of three months to one month, significantly reducing cash flow tied up in inventory. “Through the combined optimization of product portfolio and profit model, the lithium iron phosphate business has now achieved profitability,” revealed Lan Tianshi. According to the company’s announcement, GCL Technology’s Xinneng project in Leshan, Sichuan—serving as the first large-scale implementation of this strategy—has established 200,000 tons of lithium iron phosphate production capacity and entered the production debugging phase, with planned capacity already secured through advance orders from customers.

Unlocking the Strategic Value of the Silicon-Based System

While advancing into the lithium battery materials sector, GCL Technology has not abandoned its silicon-based foundation—which it has cultivated for two decades—in a 'sacrificing the essentials for the trivial' manner. Instead, it is using a more flexible approach of 'addition and subtraction' to unlock the strategic value of its existing silicon-based system.

On the 'addition' side, the accelerated penetration of the BC cell technology route has significantly boosted the technical value-added of granular silicon. Lan Tian Shi noted that BC cells are extremely sensitive to impurities in silicon feedstock; traditional Siemens-type rod silicon struggles to guarantee yield rates due to fluctuating impurity levels, whereas the high-purity characteristics of granular silicon are ideally suited for this application. Currently, GCL holds approximately 25% of the granular silicon market share, with adoption rates exceeding 40% among leading customers. Coupled with national policies that no longer approve new polysilicon capacity, the full-capacity ceiling for granular silicon is capped at approximately 480,000 metric tons, creating a differentiated scarcity barrier for low-carbon silicon feedstock. Consequently, low-carbon footprint silicon wafers are in short supply in overseas markets.

On the strategic realignment front, leveraging its advantage as the world’s largest producer of silane gas, GCL Technology plans to repurpose part of its granular silicon capacity for silicon-carbon anode production. This move aims to stabilize existing operations while accelerating expansion into the new materials sector, gradually shifting silane gas capacity from granular silicon to the higher-growth silicon-carbon anode segment.

The industry views 2026 as the first year of commercialization for silicon-carbon anodes in automotive applications. Compared to the specific capacity of 360 mAh/g for traditional graphite anodes, silicon-carbon anodes start at 1,800 mAh/g, representing a significant increase in energy density. Currently, in the high-end new energy vehicle and consumer electronics sectors, the mainstream addition ratio for silicon-carbon anodes ranges from 5% to 10%. A research report by TF Securities predicts that this proportion is expected to rise to 15% by 2027.

“The company’s pilot production line for silicon-carbon anodes will be operational within the year, gradually establishing the full industrialization process,” revealed Lan Tianshi. By optimizing its silane gas production capacity, GCL Technology has achieved a structural adjustment where growth in one area offsets decline in another between traditional polysilicon and silicon-carbon anodes. This move not only allows the company to avoid the 'over-competition' quagmire in the photovoltaic industry but also carves out a new growth driver in the lithium battery materials sector. Lan Tianshi made it clear that the company will not participate in mergers and acquisitions within the photovoltaic industry nor acquire inefficient or outdated production capacity, choosing instead to bet everything on its second growth curve with a streamlined approach.