First Solar Looks to Secure Tellurium Supplies

The global leader in sales of thin-film solar panels, First Solar (FSLR-$133.05) had to delay panel shipments last quarter due to capacity constraints. Complicating production problems, the utility-scale PV market is anticipated to surge next year, growing five-times faster than the rest of the industry, according to a recent analysis from IMS Research. With a growing backlog — 2.2 GW in North America alone — this new demand supports management’s recent decision to nearly double production, from 1.4 GW to more than 2.7 GW come 2012.

In a related development, Apollo Solar Energy (ASOE-$3.70) will provide an estimated $110 million of 5N (”five-nines,” or 99.999%) ultra-high purity tellurium — feedstock for cadmium telluride (CdTe), the semiconducting compound coating First Solar’s thin-film PV panels.

Tellurium is a relatively rare element, with more than 90 percent of global production recovered as a byproduct of copper mining and processing. Will the contract with Apollo Solar address First Solar’s need to secure forward supplies of its core photovoltaic? Read more at CBS Interactive ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.