Ascent Solar Technologies Inc. has signed a definitive agreement to establish a joint venture with the municipal government of Suqian, China, to build a factory to manufacture thin-film copper indium gallium di-selenide (CIGS) photovoltaic modules.
Under the terms of the agreement, Suqian will provide approximately $32.5 million in funding, as well as five year rent-free use of approximately 331,000 square feet of factory and office space in the Suqian Economic and Industrial Development Science Park. Ascent has agreed to purchase the factory within five years at the initial construction cost, and will also hold the right to purchase Suqian's ownership interest in the joint venture at 150% of Suqian's cash investment.
Ascent will also contribute its proprietary technology and intellectual property, as well as certain equipment from its Colorado facility. By the first quarter of 2016, the joint venture is expected to be producing 25 MW of its EnerPlex CIGS modules and related consumer products per year. Within six years, Ascent expects its manufacturing operations in Suqian to have a capacity of 100 MW per year.