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China's largest solar equipment manufacturer has begun producing photovoltaic cells using copper as a substitute for silver following significant price increases in the latter.

LONGi Green Energy Technology announced in a statement on Thursday that the start of operations at its facility in Shaanxi Province represents 'a significant achievement in the large-scale implementation of next-generation solar cell technology.'

Bloomberg News noted that the announcement follows a surge in silver prices to a record high of over $121 per ounce in January, roughly three times their level a year earlier, due to a confluence of factors.

As one of the world's largest consumers of silver, accounting for 17% of global demand last year, the solar equipment industry is striving to reduce costs by turning to alternative metals.

It is worth noting that copper, like silver, is highly valued for its high electrical conductivity. While the price of silver has fallen below $60 per ounce, the red metal, which is more widely used in the energy transition, hit new record highs, exceeding $14,000 per ton last May.

In addition to positive demand forecasts, the copper market is affected by a global shortage of ore, highlighting the potential risks of switching to other materials amid sharp price fluctuations.

LONGi announced the successful commissioning of its new plant within three months, and that the copper alloy cells it produces feature higher efficiency.

At the same time, the inauguration of this new plant represents an expansion in the solar equipment sector, which is already suffering from a sustained overcapacity and heavy losses.

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