Ascent Solar Technologies, Inc., a manufacturer of flexible thin-film PV modules integrated into off-grid applications and the company’s EnerPlex™ series of consumer products, has signed a Definitive Agreement with the Government of the Municipal City of Suqian in Jiangsu Province, China to build a CIGS PV module facility.
As previously announced under the Definitive Agreement, Suqian will build a facility to manufacture Ascent's proprietary Copper-Indium-Gallium-Selenium (CIGS) PV modules on flexible thin films. Ascent and Suqian will also form a joint venture entity in which Ascent’s share will grow progressively up to 80% based on an ascribed value of Ascent’s contributions to the JV.
Under the terms of the Definitive Agreement, in phase 1 and phase 2 of the project, Ascent is required to contribute to the JV manufacturing equipment, intellectual property assets, proprietary technology and know-how, and cash for its ownership share, and Suqian is required to contribute cash for its ownership share. Pursuant to the terms of the Definitive Agreement, Ascent’s total contribution for phase 1 and phase 2 is required to be RMB 800 million (approximately $129M USD). Suqian’s total contribution for phase 1 and phase 2 is required to be RMB 200 million (approximately $32M USD). Both are required to ascribe a dollar value to Ascent’s non-cash contributions.
Additionally, under the Definitive Agreement, Suqian has agreed to provide rent-free use of the 331,000-square-foot manufacturing facility and office space that is currently being built for Ascent in the Suqian Economic and Industrial Development Science Park.
"This agreement underscores the belief by the Suqian government that Ascent’s CIGS on flexible thin-film technology has a bright future,” said Victor Lee, President & CEO of Ascent. “We are delighted that Suqian has chosen Ascent to anchor the Suqian Economic and Industrial Development Science Park. We plan to move quickly to next steps in the partnership, with the goal of achieving scaled manufacturing capacity enabling dramatic cost reduction of our CIGS modules."