DKEM acquires majority stake in silver paste specialist Solamet

Wuxi Dk Electronic Materials Co., Ltd. (DKEM) is acquiring a 60% stake in Solamet. The Chinese silver paste supplier says it aims to absorb Solamet's patented solar paste technology and global client base amid mounting margin pressures.

PV silver paste manufacturer DKEM has revealed plans to acquire a 60% equity stake in China-based competitor Solamet Electronic Materials for CNY 696 million ($96.6 million) in cash. Once the transaction closes, Solamet will become a majority-owned subsidiary of DKEM, marking a strategic expansion of DKEM’s technological and commercial footprint.

Solamet Electronic Materials acquired the Solamet PV metallization paste business in July 2021 from DuPont, which had more than 40 years of expertise in electronic conductive pastes. The company is widely recognized as a pioneer in PV metallization materials, with advanced capabilities in glass frits, silver powder, and organic systems, supported by a global patent portfolio.

Its products, including front-side and rear-side silver pastes, are used across a range of solar cell technologies, including passivated back surface field (p-BSF), passivated emitter and rear cell (PERC), n-type passivated emitter rear totally diffused (n-PERT), tunnel oxide passivated contact (TOPCon), interdigitated back contact (IBC), heterojunction technology (HJT), and thin-film cells. Its client roster includes major manufacturers such as JinkoSolar, Longi, and JA Solar.

Solamet recorded revenue of CNY 1.26 billion in 2023, with a net loss of CNY 12.6 million. It returned to profit in 2024, reporting CNY 3.55 billion in revenue and CNY 50.9 million in net income, while total assets rose from CNY 1.60 billion to CNY 2.44 billion. Its debt level also increased, from CNY 530 million to CNY 1.79 billion.

Solamet holds 229 active patents globally, anchoring its leading position in PV paste technology. Its Pb-Te-O glass frit formulation underpins silver pastes used in P-type BSF, PERC, and mainstream N-type TOPCon cells. In 2023, it became the first company to mass-produce pastes incorporating laser carrier injection for TOPCon, a development that significantly boosted cell competitiveness.

The company is also developing silver-coated copper paste for HJT and HBC cells, ultra-low-temperature curing pastes for perovskite-silicon tandems, and maintains an active R&D pipeline in base-metal pastes.

While DKEM is a leading Chinese supplier of PV silver paste and a strong player in the TOPCon segment, it still lags Solamet in patent strength and advanced technology reserves. The acquisition will allow DKEM to integrate Solamet’s IP portfolio, R&D capabilities, and global brand recognition, strengthening its technical base and positioning across the solar value chain.

The deal comes as DKEM faces profitability pressures. In the first quarter of 2025, the company reported CNY 4.06 billion in revenue, up 11.3% year over year. However, net profit attributable to shareholders fell 80.3%, and gross margins declined from 10.65% to 6.94%. The company said it expects synergies from the acquisition to help restore profitability and support global expansion.

By absorbing Solamet’s legacy expertise and global market ties, DKEM is betting on a vertically integrated, IP-rich model to navigate rising cost pressures and tightening margins in the solar manufacturing sector.