BYD Builds its Solar Energy Dreams as its signs a huge $300 million polysilicon deal

Build Your Dreams (BYD) the Chinese battery and electric vehicle producer made famous after Warren Buffet made an investment has been facing rough times recently.Its falling auto growth,problems with land acquisitions in China and an incoherent strategy has hurt its profits and stock price in 2010.The Company has put on too many hats with investment in various green technologies besides its bread and butter car business.The most ambitious plans of BYD undoubtedly lies in the Solar Energy Business though little details have been revealed.The company is planning to spend 22.5 Billion Yuan on Solar Energy over the next 5 years for which it has already secured financing.The company has started a 100 MW cell plant in the Shaanxi province and plans to expand to 5000 MW by 2015.However its recent travails had made one think that they would have put their aside Solar ambitions .However that does not appear so.

BYD hits snag for illegal land use – China.Org

Chinese battery and low-cost car manufacturer BYD Co recently hit a bump on its road to become a leading global automaker as it was accused of illegal land use.Last Wednesday, China’s Ministry of Land and Resources said on its website that BYD will be fined 2.95 million yuan for illegally using land in Xi’an, Shaanxi province.Corporate facilities constructed on the area in question will be confiscated.

BYD signed a $300 million polysilicon supply contract with LDK Solar (another Chinese solar producer).This is a huge supply contract considering the 2 year time frame.Though  wafer and polysilicon prices have recently become slightly constrained recently,there is no scope for the massive shortages seen in 2008.This would imply a huge ramp up in BYD’s solar production plans and would mean that BYD would become a top 20 global solar company by 2012.With huge oversupply concerns being raise as every big company sets its sight on solar that looks a difficult goal.It remains to be seen how BYD manages to execute it plans on solar energy as its core Car Operations are already facing huge headwinds despite massive subsidies announced by China for Electric and Hybrid Cars.