Analysis of JA Solar's Quartz-Related Business

Based on a comprehensive search and analysis of public information, it is necessary to clearly state:

, so there is no asset concept of “quartz ore reserve value”.

JA Solar is a leading photovoltaic module manufacturer in China, mainly engaged in the R&D, production and sales of solar cells and modules[0]. The company is positioned in the midstream of the photovoltaic industry chain, with businesses covering silicon wafers, cells, modules and other segments.

• Subsidiary Sun Silicon Valley Electronics
  : Engages in the production of polysilicon, monocrystalline silicon ingots, polysilicon wafers, monocrystalline silicon wafers, and
  quartz crucibles
  , with quartz crucible sizes mainly ranging from 16 to 28 inches[1]
• Industry Chain Position
  : The company focuses on midstream manufacturing segments, rather than upstream raw material mining

JA Solar’s quartz raw materials are mainly obtained through external procurement, rather than self-owned mine mining:

Supply Segment	Details
Main Suppliers	US Unimin (Sibelco), Norway’s TQC, Quartz Co., Ltd., etc.[2]
Procurement Model	Sign long-term agreements to ensure stable raw material supply
Raw Material Type	High-purity quartz sand (4N8 or higher purity required for the inner layer of photovoltaic crucibles)
Quartz Sand Price	Approximately RMB 27,000 per ton (2019 industry data)[2]

The tax-inclusive price of each quartz crucible is approximately RMB 15,000, accounting for about 2.2% of the production cost of silicon wafers. It is an important auxiliary material but not a core raw material cost item[2].

• Application Scenario
  : Mainly used in the production of quartz crucibles for monocrystalline silicon pulling, which is a core consumable in photovoltaic silicon wafer production
• Quality Requirements
  : 4N8 (99.998%) or higher purity is required for the inner layer of photovoltaic crucibles, with strict requirements on the content of elements such as Al, Na, K, and Ca[2]
• Global Supply Pattern
  : High-purity quartz raw material deposits are mainly distributed in the US, Norway, Australia, Russia and other countries, and resources are relatively scarce

1. Supply Chain Security
   : The company ensures stable raw material supply by signing long-term agreements with major quartz sand suppliers
2. Cost Pass-Through Ability
   : The company’s cost pass-through ability is worthy of attention when quartz sand prices fluctuate
3. Industry Trends
   : The impact of the tight supply pattern of high-purity quartz sand on downstream silicon wafer enterprises

As a photovoltaic module manufacturer, JA Solar mainly obtains quartz raw materials through external procurement, and

. The company focuses its resources on capacity expansion and technological upgrading in the midstream manufacturing segment, and ensures stable raw material supply through supply chain management, rather than gaining value by controlling upstream mineral resources.

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[0] Jinling API - JA Solar Company Profile Data (https://www.jasolar.com)

[1] Industry Research Report - Analysis of the Quartz Crucible Industry Chain (https://pdf.dfcfw.com/pdf/H3_AP202303071584103356_1.pdf)

[2] Guoyuan Securities Research Report - Analysis of the Quartz Technology Industry (https://aigc.idigital.com.cn/djyanbao/2024-01-27.pdf)