Shanghai Inabata Trading Co.,Ltd.

How did the solar cell materials business begin?

Shi: We started handling samples of silver paste in 2015, and we are now supplying it to several major Chinese solar cell manufacturers. A solar panel is composed of many “cells” that serve as power conversion devices. Silver paste is an important material that accounts for approximately 20% of the total cell cost.

What are the characteristics of the Chinese solar cell market?

Kang: Historically, even the top manufacturers have faced repeated bankruptcies and withdrawals due to changes in government subsidy policies. However, in recent years, demand has been rising due to increased global environmental awareness, and businesses are no longer reliant on subsidies. The Chinese government has set a target of achieving carbon neutrality by 2060, with a particular focus on solar and wind power generation. As a result, China has emerged as the world’s largest producer of renewable energy.

Shi: Competition in the industry is intensifying as the market expands. Initially centered in Europe and the United States, solar cell production shifted to Japan and South Korea, and now more than 80% of solar cell production is based in China. Approximately 80% of Chinese solar cell manufacturers produce what are known as PERC*1 cells, but they are approaching the upper limit of power conversion efficiency, and further performance improvement is said to be difficult.

What are your future ambitions for the solar cell materials business?

Kang: The theoretical power conversion efficiency of HJT*² cells, which use our silver paste, is higher than that of conventional PERC cells. With further development, it should be possible to produce greater power generation with HJT cells at the same cost as PERC cells. Other advantages of HJT cells include a better non-defective product rate, double-sided power generation, and less long-term degradation.

As the market share is projected to increase by about 30% by 2030, we aim to enter the market as a supplier to take advantage of Chinese solar cell manufacturers’ shift from PERC to HJT.

Shi: Chinese material manufacturers are beginning to emerge, and the business environment for those dealing with Japanese material manufacturers is becoming increasingly challenging. However, we will strive to maintain our leading-edge position by obtaining development information from solar cell manufacturers in a timely manner and responding flexibly to their technological requirements. Chinese solar cell material manufacturers have been enhancing their technological capabilities, presenting an opportunity for them to expand their overseas sales. We aim to utilize the IK Group’s network to expand sales to solar cell manufacturers at our overseas bases.

Inabata Singapore(Pte.)Ltd.

*VMI means Vendor Managed Inventory

How did the solar cell materials business begin?

Iwahashi: We supply silver paste, one of the key materials used in the production of solar cells, to an anonymous company (company A), a Singapore-based manufacturer of these cells.

In 2015, IKJ and Inabata Europe collaborated to supply silver paste samples for a manufacturer specializing in HJT cell manufacturing equipment, and the equipment manufacturer certified it as a recommended material. Two years later, when the company A decided to purchase HJT cell manufacturing equipment from this same manufacturer, they chose to use Inabata’s silver paste as well.

With my role as the sales representative for the silver paste supplier in Japan, and Inabata Singapore’s solid track record of exporting to solar cell manufacturers, I was able to confidently expand our sales to the company A.

What are the characteristics of the Indian solar cell market?

Iwahashi: The Indian government has set a target of expanding the share of renewable energy in total power generation to 40% by 2030. To achieve this goal, the government plans to leverage India’s vast land and abundant sunlight to expand solar power generation to 500 GW, which is five times Japan’s 2030 solar power generation target. A major Indian conglomerate is also collaborating with the government to promote solar cell manufacturing. As part of this effort, the conglomerate has acquired the company A, which was already a sales partner of Inabata, and is considering developing solar cells in India that have a superior temperature coefficient at high temperatures.

What are your future ambitions for the solar cell materials business?

With our extensive experience in the solar cell materials industry, we are excited to actively promote the growth of Indian solar cell manufacturers. Our first step in this endeavor is to offer our silver paste to the company A, along with encapsulants and other essential materials.

Nick: In the Indian market, we will be competing for market share with Chinese material manufacturers who are rapidly advancing in technological capabilities. However, Singapore has a strong historical relationship with India and is an ideal country to facilitate economic exchange between India and China. We aim to collaborate with suppliers and expand our business to meet the stringent demands of solar cell manufacturers.

Moreover, we plan to actively develop materials for the expanding electric vehicle market alongside our solar cell materials.