LDK Solar finalizes Hyundai Heavy Industry wafer deal

Xinyu, China-based LDK Solar (NYSE:LDK) said today it plans to deliver polysilicon wafers as part of its seven year agreement to meet growing demand for solar technology in Korea.

Hyundai Heavy Industries said it plans to make a down payment to LDK Solar which represents a portion of the overall contract value, which begins in 2009 and runs through the end of 2015 (see LDK Solar to supply wafers to Moser Baer).

The multi-year partnership is expected to help Hyundai Heavy Industries meet growing demands in Korea's solar market (see LDK, Applied Materials in equipment contract). Hyundai Heavy Industries said a long-term, secure supply pipeline of wafers is critical to ensure market efforts move forward (see LDK to supply Hyundai Heavy Industries with solar wafers).

The Korean government said global solar energy market is expected to nearly triple to $100 billion in 2012 from its $30 billion market in 2007. In four years, the Korean government estimates that a total of 100,000 homes will be powered by solar energy, which is up from 14,500 houses in 2007.

Today’s solar market is led by Japan, Germany and the United States. The combination of those three countries owns an estimated 88 percent of the battery and module production market, according to the Korea Policy Review.

The Korean Ministry of Knowledge Economy outlined its country’s alternative energy plans in May of this year. Over the next three years, the Korean government said it plans to increase the supply of alternative energy to five percent and by 2030 expects to produce 9 percent of its energy from alternative sources.

The Korean government also outlined in that same report three major areas of research and development investment: hydrogen fuel cells, solar energy and wind power.

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