(Bloomberg) -- China’s Longi Green Energy Technology Co. may be the next solar panel maker to see products detained at the U.S. border under a Biden administration crackdown prompted by allegations of human rights abuses in the Asian nation, according to Roth Capital Partners.
The world’s largest producer of solar modules has been notified that detainments are “imminent,” analysts at the Newport Beach, California-based investment bank said Tuesday in a note to clients.
Longi would join JinkoSolar Holding Company Limited, Canadian Solar Inc. and Trina Solar Co. on the list of solar manufacturers tied to Hoshine Silicon Industry Co. that have had modules detained in recent months. Xinjiang-based Hoshine produces metallurgical-grade silicon that is used in the solar panel manufacturing process.
The Biden administration started blocking imports of silica-based products made by Hoshine in June. The U.S. measure was designed to confront alleged human-rights abuses in northwest China’s Xinjiang region, where advocacy groups and a panel of United Nations experts say Uyghurs and other minorities have been forced to work against their will.
Nearly half the world’s supply of polysilicon, a major input material for photovoltaic panels, is produced in Xinjiang. Any detainments are expected to drive up the cost and demand for solar panels in the U.S., according to Roth.
Calls to Longi’s headquarters in Xian, China and global offices in Frankfurt weren’t immediately returned.
©2021 Bloomberg L.P.