Two solar industry heavyweights announced a 50/50 joint venture for solar cell production in China today.  JA Solar (JASO) and MEMC Electronic Materials (WFR) will build and operate a solar cell production facility in China with phase 1 calling for 250MW of capacity which may be expanded up to 1GW.

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"We are delighted to embark on this exciting initiative with MEMC, and to continue our successful approach to partnering with the world’s leading solar companies," said Dr. Peng Fang, CEO of JA Solar. "This milestone agreement is further proof of the success of our focus on being the leading provider of value-added tolling technology and production solutions. By choosing to partner with JA Solar, we believe that MEMC recognizes the value we offer, and the support we provide to our partners’ growth strategies. We expect that this alliance will further enhance the sustainability and profitability of our business over the long term."

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Shares of solar stocks remain in pull back mode including WFR.  Today, the stock is down significantly again and has pulled all the way back to its 50dma after a big breakout a few weeks ago.  Soon, the stock may offer an outstanding 2nd chance opportunity.  As for JASO, it’s making a bearish move today, taking out critical support of the 200dma.  Should it close below that level, it could signal another leg down in the coming weeks.