Longi Green Energy Technology Co. is preparing a major shift in how it makes solar cells, moving away from heavy reliance on silver and toward lower-cost base metals as the industry grapples with rising material prices and shrinking margins, according to Bloomberg.

The company said it will begin large-scale production using base metals in the second quarter, a step it expects will "further lower the costs of solar modules," according to a regulatory filing on Monday.

The decision comes as solar manufacturers — the largest industrial users of silver — face intense competition and oversupply, making the recent surge in silver prices especially painful.

Investor demand tied to geopolitical uncertainty and US interest-rate cuts has driven prices sharply higher, turning silver into the most expensive component of solar cell production.