LONGi Green Energy Technology Co. saw its Shanghai-listed shares close 0.7% higher at 18.36 yuan on Friday, as investors digested a significant intellectual property agreement and a shifting demand outlook for China's solar industry.
Patent Deal Sets Precedent
The market focus follows the disclosure of a 1.65 billion yuan patent licensing agreement between Aiko Solar Energy and Maxeon Solar Technologies. The 15-year deal grants non-exclusive rights to Maxeon's back-contact (BC) solar cell and module patents outside the United States, with the first 250 million yuan payment due in 2026. TCL Technology Group, Maxeon's parent, noted the fee is fixed and not tied to sales volumes.
This agreement effectively establishes a public price for critical BC solar intellectual property, which moves electrical contacts to the rear of cells to improve efficiency. The precedent could ripple through Chinese manufacturers, particularly those targeting export markets with stricter patent enforcement.
Demand Headwinds Emerge
The patent development coincides with a softening sector outlook. China's photovoltaic industry association projects new solar installations will decline to between 180 and 240 gigawatts in 2026, down from 2025 levels. A Ministry of Industry and Information Technology official described the coming year as pivotal for addressing "involution"—the industry's term for intense price competition following a capacity surge.
LONGi investors now confront a dual challenge: whether more transparent IP expenses will add to existing cost pressures in a sector with soft pricing, or whether expanded cross-licensing could reduce legal disputes and facilitate exports.
The broader patent dispute involving BC and TOPCon (tunnel oxide passivated contact) technology already involves LONGi, JinkoSolar, and others across multiple regions. With the Shanghai Stock Exchange closing for the Spring Festival holiday from February 15-23, investors have limited sessions to adjust positions ahead of LONGi's expected 2025 annual report release on April 29.