China’s LONGi is sinking USD 6.7 bn in the world’s largest solar manufacturing base: China-based PV manufacturer and solar developer LONGi intends to invest CNY 45.2 bn (USD 6.7 bn) to build the world’s largest solar manufacturing base, Bloomberg reports, citing a company statement. It reportedly signed a letter of intent with local governments in China’s Shaanxi to set up projects that will double its manufacturing capacity, producing 100 GW of solar wafers and 50 GW of solar cells annually, Bloomberg notes, citing a Shanghai Stock Exchange filing. The plants are expected to become operational in 3Q 2024.

What could this mean for us? Even more reliance on The Red Dragon: China already has a monopoly over global solar panel supply chains with a market share of solar manufacturing products exceeding 80%, according to a July 2022 IEA report (pdf). This could increase to up to 95% by 2025, the report noted.

MENA’s solar projects have been hampered by supply chain snags: Solar projects in the UAE, Saudi Arabia and Egypt have all faced delays in recent years, partly due to difficulties procuring essential manufacturing components off the back of rising import costs, import restrictions, and the impact of global inflation on key raw materials like silicon and aluminum.

But there is good news: LONGi indicated interest in growing its MENA footprint earlier this month, signing an agreement with KSA’s sovereign wealth fund the Public Investment Fund covering the local manufacture of solar PV products in Saudi Arabia. The company had already announced it was “actively studying” the prospect of setting up manufacturing plants in key locations outside of China — including Saudi Arabia — in late-2021.