Chinese solar technology company LONGi has entered into a long-term supply agreement with the silicon metal and ferroalloys producer Ferroglobe PLC (NASDAQ:GSM), effective January 1, 2024.

Under the terms of the agreement, Ferroglobe will supply high-quality quartzite and metallurgical grade silicon (MGS) to LONGi.

This is expected to support LONGi's strategy to increase purchases from Western suppliers of silicon materials.

LONGi has manufacturing facilities and sales offices in more than 150 countries and regions worldwide.

"We are thrilled to announce our long-term partnership with Ferroglobe," said Tian Ye, Vice President, LONGi. "This strategic move will enable us to supply our trusted customers and partners with LONGi's dependable, high-efficiency, and eco-friendly solar products worldwide."

Last month, Ferroglobe registered a 36% year-on-year decline in revenue in FY23 to $1.7 billion.

Price Action: GSM shares are trading higher by 0.44% at $4.57 in premarket on the last check Monday.

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