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TFG Radiant Group to produce Ascent Solar’s CIGS modules in Asia

In a royalties, stock and strategic deal, TFG Radiant Group has announced that it will purchase 6,400,000 of Ascent Solar’s stock for US$7.36 million at the same time obtaining an exclusive license to produce and distribute Ascent’s flexible CIGS thin-film modules in East Asia.

Ascent Solar's CIGS flexible substrate thin-film photovoltaics will be manufactured in China under a new deal. Image: Ascent Solar.

The companies have announced that a factory to produce the modules will be built in China, at a cost to TFG Radiant of US$165 million. It will have an annual production capacity of 100 megawatts (MW). With the royalties agreement, the total deal is worth US$450 million. The Chinese group also retains the right to purchase an additional 9,500,000 shares of Ascent stock, for approximately $14.7 million.

The East Asian region where TFG Radiant will manufacture and distribute Ascent’s modules, includes China, Taiwan, Hong Kong, Malaysia, Indonesia, Thailand, Korea and Singapore. Ascent retains all rights for the rest of the world. Ascent Solar will also develop a "next-generation" PV production line in the American state of Colorado. TFG Radiant retains the right to build additional plants in the East Asian region, for which Ascent will receive some royalties and retain some ownership.

Ascent’s Chairman Amit Kumar said, in a statement announcing the deal, "This partnership enables Ascent to pursue the building integrated and building applied photovoltaic markets with a partner that will finance and drive manufacturing, sales, marketing, distribution and installation. Ascent will receive ownership in the offshore FABs, and a royalty that will drop directly to our bottom line.” He continued that the partnership would allow Ascent to focus on “premium markets” and also on research and development.

TFG Radiant, which has experience in roof design and materials, commented in the release that, "We are convinced that Ascent's ultra-light flexible modules are the best for China and East Asia, which we expect to be the largest markets in the world." CEO and President Inbo Lee added, “Having been Ascent's exclusive distributor in China for the past year, we know this is the product our customers want."