China's LONGi Replaces Silver with Base Metals in Solar Panels to Cut Costs

Beijing | EcoPulse24

LONGi Green Energy Technology plans to start using base metals instead of silver in its solar cells, a technological shift aimed at easing cost pressures intensified by record-high silver prices and fierce competition in the solar industry, where profit margins remain thin.

The company recently disclosed that large-scale commercial production of panels using base metals is expected to begin in the second quarter, contributing to further reductions in solar module costs. Detailed implementation plans were not revealed.

This strategy has accelerated due to the sharp rise in silver prices, which has become an increasing burden for manufacturers. According to BloombergNEF, silver now accounts for about 14% of solar panel production costs, up from 5% just two years ago, driven by robust hedging demand and global monetary easing.

LONGi distinguishes itself from most competitors by producing back-contact (BC) solar cells, which can generate more power from the same amount of sunlight. While this technology is less widespread than the mainstream TopCon approach, replacing silver with base metals is technically easier in BC cells, enabling a cost reduction of about 0.02 yuan per watt, according to company estimates.

Additionally, LONGi stated its new energy storage business will target the domestic market as well as Europe, the US, and Australia, aiming to diversify growth sources and buffer against solar panel market volatility.

EcoPulse24 Analysis
LONGi’s move signals a structural shift in the solar industry, as rising silver prices push companies to accelerate material and manufacturing innovation. If the substitution succeeds without significant efficiency loss, the initiative could spread across the sector, reducing cost sensitivity to precious metals and reshaping profitability curves. However, adoption speed will depend on manufacturers’ ability to balance cost savings with performance stability in a market with little tolerance for technical errors.