(Yicai Global) April 10 -- TCL Zhonghuan Renewable Energy Technology, the world’s second-biggest solar wafer maker, plans to expand further downstream in the photovoltaic industry by building a high-efficient solar battery factory at a cost of CNY10.7 billion (USD1.6 billion).

The new plant will have an annual capacity of 25 gigawatts of tunnel oxide passivated contact, or TOPCon, high-efficient PV batteries, the Tianjin-based company said yesterday, without revealing the location. The project will be built in 24 months and have a payback period including construction of nearly 5.8 years.

TCL Zhonghuan will issue CNY13.8 billion of convertible bonds and use CNY10.3 billion for the new project and CNY3.5 billion (USD508.9 million) for the CNY4.1 billion expansion plan that will add 35 GW of solar wafer annual capacity to its base in Ningxia Hui Autonomous Region unveiled in February, the firm noted.

Wafers have always been a primary source of income for TCL Zhonghuan. Last year, they contributed 76 percent of the company’s total revenue, per its latest earnings report. The new high-efficient batteries provides a unique opportunity for the wafer giant to foray into the downstream industry chain to make itself a more complete player.

Its annual capacity of single-crystal silicon reached 140 GW as of the end of last year and will likely rise to 180 GW by the end of 2023, the report showed.

Shares of TCL Zhonghuan [SHE: 002129] ended 0.4 percent lower at CNY48.88 (USD7.11) each today, after earlier falling by as much as 4.1 percent. The wider Shenzhen market lost 0.8 percent.

Editor: Futura Costaglione