5N Plus Poised for Increased Tellurium Orders from First Solar Amid China Export Controls

5N Plus

US Solar Panel Giant May Boost Spot Demand as 5N Plus Expands Non-Chinese Supply and Space Solar Capacity

5N Plus Expects Surge in Tellurium Spot Sales from First Solar

Canadian semiconductor materials producer 5N Plus anticipates additional spot tellurium orders from US-based solar panel leader First Solar, as the latter moves to diversify its supply chain away from China. The shift comes after Beijing imposed new export controls on tellurium, following similar restrictions on gallium and germanium.

First Solar uses cadmium telluride (CdTe) in its thin-film solar panels and partners with 5N Plus to refine tellurium by-product sourced from Rio Tinto’s Kennecott mine in Utah. 5N Plus already has a minimum-volume supply agreement, which was increased by 50% for the next two years, effectively tripling the contract volume compared to 2022.

According to CEO Gervais Jacques, First Solar is “most likely to request more than the minimum,” signaling robust demand as the U.S. seeks to reduce reliance on Chinese critical minerals.

5N Plus Expands Non-Chinese Supply Chains and Space Solar Production

While First Solar evaluates potential disruptions from China’s export policy, 5N Plus has strengthened sourcing of key materials. It procures germanium from Europe and Canada, while maintaining a stable bismuth supply outside of China. These measures are part of a broader strategy to insulate the company from geopolitical supply risks.

Additionally, 5N Plus is scaling up its space solar division, which manufactures advanced germanium substrates used in high-efficiency satellite applications. These substrates are layered with materials such as AlInGaP, AlGaAs, and InGaAs. The company expects this business to grow by 30% in 2024, with capacity expansions ongoing through Q4.

Bismuth Chemicals to See Steady Demand from Health Sector

Beyond semiconductors, 5N Plus projects continued bismuth demand growth driven by pharmaceutical and healthcare markets, in line with global GDP trends. The company’s Lübeck, Germany facility is positioned to support this growth, supplying high-purity bismuth chemicals used in medical applications.

First Solar Secures US TOPCon Patent

US-based solar module manufacturer First Solar has successfully obtained a US patent for its solar cell production technology, paving the way for an investigation into potential patent infringements.

The company announced today that it has acquired patents for the Tunner Oxide Passivated Contact (TOPCon) cells, which utilize crystalline-silicon (c-Si) photovoltaic (PV) technology, following its acquisition of TetraSun in 2013.

With this patent acquisition, First Solar has launched an investigation into c-Si solar manufacturers to identify any possible infringement of its patents, which are issued in the US, Mexico, China, Malaysia, Vietnam, Japan, and Australia. The probe also covers pending patent applications in the EU and Japan.

First Solar is known for producing thin-film cadmium-telluride (CdTe)-based photovoltaic modules, a crucial element in advancing solar energy technology and the broader energy transition.

Bismuth Tellurium PV Demand Growth Driven by Solar Technology Expansion

Bismuth

Bismuth tellurium PV demand faces divergent growth trajectories as photovoltaic industry expansion supports bismuth consumption while trade conflicts constrain tellurium market development. The bismuth tellurium PV sector dynamics were highlighted at the 2025 China bismuth and tellurium development forum in Chenzhou, where industry experts analyzed critical materials supply chains for emerging solar technologies.

Bismuth Consumption Accelerates Through HJT Solar Battery Growth

Bismuth tellurium PV applications demonstrate strong growth potential, particularly in heterojunction (HJT) solar battery manufacturing. Global bismuth consumption reached 18,000-19,000 tonnes in 2024, with China representing approximately 40% at 6,600-6,800 tonnes according to Vital Technology Group. The HJT battery technology combines crystalline silicon advantages with thin film capabilities, requiring bismuth-based low-temperature welding materials.

Meanwhile, global HJT cell shipments surged from 4 GW in 2022 to 25 GW in 2024. Demand for low-temperature welding materials increased correspondingly from 2,000 tonnes in 2022 to 10,000 tonnes in 2024. Industry projections indicate HJT shipments will reach 80 GW in 2025, requiring 30,000 tonnes of specialized welding materials containing bismuth.

Tellurium Market Faces Trade-Related Headwinds

However, tellurium consumption encounters challenges despite growing photovoltaic industry demand. China dominates global tellurium production with 803 tonnes in 2024, representing 68% of worldwide output totaling 1,179 tonnes. The metal finds primary application in cadmium-telluride (Cd-Te) thin-film solar modules, consuming approximately 130 tonnes per gigawatt of production capacity.

Therefore, trade tensions between China and the US create uncertainty for tellurium demand growth. Major US manufacturer First Solar reduced sales guidance from 18-20 GW to 15.5-19.3 GW in April, citing trade uncertainty and higher tariffs imposed since President Trump's February inauguration. This guidance reduction directly impacts global Cd-Te consumption projections for 2025.

Building-Integrated PV Creates New Demand Channels

Furthermore, building-integrated photovoltaic (BIPV) applications present emerging growth opportunities for both critical minerals. China plans significant BIPV capacity expansion, potentially increasing tellurium utilization according to China Triumph representatives. Global Cd-Te thin-film solar cell output reached 16 GW in 2024, indicating 2,080 tonnes of Cd-Te demand for absorption layer applications.

As a result, bismuth benefits from diversified application portfolios including automobile glass ink (19% of consumption), pigments (13%), catalysts (8%), and pharmaceuticals (8%). This diversification provides stability compared to tellurium's concentrated dependence on solar module manufacturing, which remains vulnerable to geopolitical trade disruptions affecting major consuming markets.

The Metalnomist Commentary

The contrasting trajectories of bismuth and tellurium in photovoltaic applications highlight how trade policies increasingly influence critical minerals demand patterns beyond traditional supply-side considerations. While technological advancement drives fundamental growth in both materials, tellurium's concentrated exposure to US-China trade tensions demonstrates the vulnerability of specialized critical minerals to geopolitical disruptions in key end-use sectors.