JinkoSolar's (JKS) Arm & CATL to Promote Carbon Neutrality
JinkoSolar Holding Co. Ltd. JKS announced that its subsidiary Jinko Solar Co., Ltd. has signed an agreement with Contemporary Amperex Technology Co., Ltd. ("CATL") to jointly promote the usage of solar energy for reducing emissions.
Per the agreement, these companies will work jointly and promote carbon neutrality in the industrial chain, global solar-plus-storage business development along with innovation and development of solar-plus-storage integrated solutions.
Rise in Global Usage of Solar Energy
Solar energy is one of the widely used renewable sources across the globe to produce emission-less electricity. Availability of sun rays across the globe, and ongoing research and development in the solar space have made utility-scale solar projects more competitive than the traditional sources of energy to produce electricity.
Per SolarPower Europe forecast, the total solar power generation fleet will boost capacities from about three quarters of a terawatt (TW) in 2020 to more than 1 TW in 2022 and nearly 1.9 TW in 2025. It is clearly evident from the forecast that there will be a huge demand for solar products in the near future and companies operating in this space like JinkoSolar, Canadian Solar CSIQ, ReneSola Ltd. SOL and Array Technologies, Inc. ARRY, among others, will gain from the increasing demand for solar products.
JinkoSolar in a Polysilicon Deal
Undoubtedly, the demand for solar panels will increase on a global scale, which will assist in cutting emissions and checking global warming. Polysilicon is an essential raw material for the production of solar cells and the ongoing increase in polysilicon prices is enhancing the price of solar modules on a global scale.
JinkoSolar Holding, taking into account the expected increase in solar cell demand on a global scale in the next few years, has already signed an agreement with Wacker Chemie AG (Waker) for the supply of polysilicon. Per the agreement, Wacker will supply more than 70,000 tons of polysilicon to Jinko Solar Co. from September 2021 to December 2026. This deal in a way allows JinkoSolar to manufacture its products from a high-quality raw material source and ensures stable supply of high-efficiency products to global clients.
Price Performance
In the past three months, shares of JinkoSolar have gained 33.9%, outperforming the industry's 18% growth.
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Zacks Rank
JinkoSolar currently has a Zacks Rank #3 (Hold).
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