Q-Cells AG Secures Supplies of Metallurgical Silicon

Q-Cells AG has signed a long-term supply agreement with Elkem Solar (Oslo), a member of Norway’s Orkla Group, in which Elkem Solar will supply Q-Cells AG with contractually fixed quantities of metallurgical silicon starting in 2008.

In addition to a base volume of 800 tons in 2008, 2,800 tons in 2009, and 2,400 tons per year from 2010 to 2018, Q-Cells AG has an option to procure an additional quantity of up to 1,600 tons in 2010 and between 2,500 and 5,000 tons per year during the remaining years of the agreement, subject to Elkem Solar expanding further. The total quantities of silicon to be supplied under the agreement are expected to be sufficient to manufacture over 10 gigawatt-peak (GWp) of solar cells. This means that as soon as 2010, Q-Cells should have material to be able to produce more than 1 GWp of solar cells per year, considering the contractually secured amount of poly- and metallurgical silicon. In connection with the agreement on silicon supplies, Q-Cells AG will acquire 17.9 % of the share capital (88,456,767 shares) in REC Renewable Energy Corporation ASA, Hoevik, Norway, from Good Energies. Apart from securing large quantities of metallurgical silicon, Q-Cells AG is therefore investing in the world’s largest manufacturer of polycrystalline silicon and silicon wafers for the production of solar cells (solar-grade silicon) and one of the world’s leading PV companies. Due to the new agreement concerning the delivery of metallurgical silicon, Q-Cells AG expects additional strong growth in production volume in 2009. Concerning sales revenues, Q-Cells aims to reach approx. a 40% growth.