As polysilicon prices have continued to slump this year, silicon companies are facing operating pressure from cost inversion. Instead of engaging in intense competition in the domestic market, some have started looking overseas for increased demand.

GCL Tech announced that it has signerd a strategic cooperation agreement with MDC Power, a unit of UAE-based Mubadala Investment Co., one of the UAE’s sovereign wealth fund, to build a polysilicon manufacturing facility in the United Arab Emirates.

GCL Tech did not disclose the location of the factory, which will be the Middle East's first polysilicon manufacturing facility.

“The company expects to continually develop its collaboration with Mubadala with a view to entering into legally binding investment agreements in relation to the Collaboration Project,” GCL Tech said, without providing additional details about the project.

GCL Tech said it currently has 12 GW of ingot capacity and 58.5 GW of wafer capacity in China. It is working on perovskite tandem technology, with reported efficiencies of 19.04% for a single-junction module and 26.34% for a tandem module.

GCL Tech said in its 2023 financial report that after two years of careful planning, the company’s polysilicon project in the Middle East would focus on lower-carbon, lower-cost and higher-quality granular silicon technology, leading and promoting China’s PV manufacturing industry to climb to the high-end of the value chain overseas.

Since last year, TCL Zhonghuan, Trina Solar and ArcTech Solar included, China’s PV companies have successively announced investment plans in the Middle East, with planned capacity for wafers, cells, modules and auxiliary materials. According to data from InfolinkConsulting, in 2023, PV demand in the Middle East is about 20.5GW-23.6GW.