The supply-demand imbalance in the upstream polysilicon segment of the photovoltaic industry has yet to see any fundamental improvement. Against this backdrop, reporters noted that GCL Technology Holdings, a polysilicon producer with a market capitalization approaching RMB 30 billion, recently announced the launch of a comprehensive strategic transformation and upgrade.

According to the company’s announcement, the core objective of this strategic transformation is to evolve from a “global granular silicon single-product champion” into a “global multi-product new energy materials platform.”

“This strategic transformation is the company’s proactive response to the industry downturn and a strategic move to seize the explosive opportunities in energy storage,” a GCL Technology representative told reporters. “During this period of deep restructuring in the photovoltaic industry, relying solely on a single-product portfolio makes it difficult for enterprises to achieve sustainable, high-quality development. Leveraging the company’s technological and manufacturing foundation in silicon-based materials, we are expanding into energy-storage-related material sectors to diversify cyclical industry risks and align with growing energy storage market demand.”

This strategic transformation is far from starting from scratch. According to the company announcement, GCL Technology is positioning Physical Iron Red lithium iron phosphate (LFP) as its core growth engine, while silicon-carbon anodes will form the company’s second growth curve. To date, the company’s Xinneng Project in Leshan, the first large-scale carrier of this strategy, has completed construction of 200,000 tons of LFP production capacity and entered the production commissioning stage.

Recently, Deng Song, Chief Marketing Officer of GCL Lithium Battery, also discussed the pace of strategic execution during a media interview. He stated that the company has already established partnerships with several leading battery cell manufacturers and secured multiple long-term orders.

Regarding capacity planning, Deng revealed that GCL Lithium Battery has planned a total of 750,000 tons of cathode material capacity. Among this, the first phase of the Renshou project, with 150,000 tons of capacity, has already commenced production; the first phase of the Leshan cathode material project, with 200,000 tons of capacity, is scheduled to begin operations this month; while the second phases of the Renshou and Leshan projects, totaling 400,000 tons of additional capacity, are currently under planning.

“From an industry structure perspective, LFP production capacity is showing clear differentiation,” Deng explained. “While capacity for general-purpose products is trending toward oversupply, high-compaction-density materials targeting applications such as 800V fast charging and premium energy storage are expected to remain in short supply through 2028. Currently, the company’s market share stands at around 1% to 2%, with a future target of increasing it to 10% to 15%, corresponding to production capacity exceeding one million tons.”

Over the past three years, aggressive expansion across the photovoltaic industry has resulted in severe overcapacity, driving continuous declines in prices for core products such as polysilicon and solar modules. The industry has become trapped in a vicious cycle of “the more produced, the greater the losses.”

In 2025, GCL Technology Holdings recorded a net loss of RMB 2.868 billion, compared with a net loss of RMB 4.75 billion in 2024, narrowing losses by nearly RMB 2 billion year-on-year. However, according to company analysis, the reduced losses were mainly attributable to improved profitability in its core business and one-off gains from asset disposals, while the industry itself has yet to complete its market correction and consolidation.