BUSINESS

China’s Tongwei Seeks to Cement Solar Dominance With Acquisition

Published: Feb. 25, 2026 1:37 p.m. GMT+8

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Tongwei’s fishery-solar hybrid power station in Nantong, Jiangsu province. Photo: VCG

Tongwei Co. Ltd. (600438.SH), the world’s largest polysilicon producer, is planning to acquire a smaller rival in a move to consolidate its market share amid China’s long-running solar slump.

In a filing dated Wednesday, the Shanghai-listed giant said it had signed an intention agreement with Qinghai Lihao Clean Energy Co. Ltd.’s chairman and other shareholders to acquire 100% of the company via share issuance and cash payment, although certain details of the deal remain uncertain.

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Tongwei Co. Ltd., the world’s largest polysilicon producer, plans to acquire 100% of Qinghai Lihao Clean Energy to consolidate market share, potentially boosting its dominance in China’s polysilicon market to 30%.
The solar industry in China is facing overcapacity and price wars, with Tongwei reporting losses of 7 billion yuan in 2024 and estimating up to 10 billion yuan loss in 2025.
The acquisition is subject to due diligence, with previous regulatory pushback against industry consolidation attempts.

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Who’s Who

Tongwei Co. Ltd.: Tongwei Co. Ltd. (600438.SH) is the world's largest polysilicon producer. Facing a severe solar slump and heavy losses, it plans to acquire Qinghai Lihao Clean Energy Co. Ltd. to consolidate market share. This acquisition would increase Tongwei's dominance to approximately 30% of China's polysilicon market.

Qinghai Lihao Clean Energy Co. Ltd.: Qinghai Lihao Clean Energy Co. Ltd. (青海丽豪半导体材料有限公司), founded in 2021, is a polysilicon producer based in Xining, Qinghai province. By late 2023, it achieved 150,000 tons of annual polysilicon capacity, ranking among the world's top ten producers. Valued at 14 billion yuan in January 2024, it was recognized as a fast-growing unicorn. However, its expansion plans have been impacted by market downturns.

Jiangsu Runergy New Energy Technology Co. Ltd.: Tongwei Co. Ltd. attempted to acquire a 51% stake in Jiangsu Runergy New Energy Technology Co. Ltd. This deal, however, was ultimately scrapped in February 2025 after prolonged negotiations failed to reach a final agreement.

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What Happened When

2021：: Qinghai Lihao Clean Energy Co. Ltd. was founded in Xining, Qinghai province.

By late 2023：: Lihao scaled to 150,000 tons of annual polysilicon capacity, entering the world's top ten producers.

January 2024：: Lihao achieved a valuation of 14 billion yuan after completing five rounds of funding.

2024：: Tongwei reported a loss of 7 billion yuan.

February 2025：: Tongwei scrapped its attempt to buy a 51% stake in Jiangsu Runergy New Energy Technology Co. Ltd.

2025：: China's total polysilicon capacity surpassed 3.5 million tons.

2025：: Tongwei estimated a loss of up to 10 billion yuan for the year.

As of September 2025：: Tongwei’s total liabilities stood at nearly 144.9 billion yuan.

December 2025：: A joint venture led by top polysilicon producers was formally established to absorb excess capacity and debt.

January 2026：: The State Administration for Market Regulation warned polysilicon companies about potential monopoly risks, leading to a suspension of joint venture operations.

Wednesday, February 25, 2026：: Tongwei announced it had signed an intention agreement with Lihao's chairman and shareholders to acquire 100% of Lihao. Trading of Tongwei’s shares and convertible bonds was suspended.

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