China's LDK Solar in $300-million polysilicon supply deal with BYD

LDK Solar Co, Ltd, a Chinese manufacturer of photovoltaic (PV) products and the world's largest producer of multicrystalline wafers has received a two-year polysilicon supply order worth $300 million from electric-car and electric auto batteries maker BYD Co.

Polysilicon is a key component of solar panel construction and consists of small silicon crystals, which is used to produce solar cells. When assembled together in modules, electricity can be generated from sunlight.

Xinyu City, Jiangxi province-based LDK Solar will supply polysilicon to BYD under a two-year contract with monthly shipments expected to start in January 2011 until the end of 2012.

LDK Solar said that it has already received a deposit for the contract.

"We are very excited to add BYD, a leading high-tech enterprise that has a strong commitment to the green energy sector, as a key customer," said Xiaofeng Peng, chairman and CEO of LDK Solar.

"This agreement is a testament to the success of LDK's polysilicon facilities and our ability to provide customers with quality PV products that can help them achieve their business goals," he added.