First Solar & Evolar: 25% Solar Efficiency Boost

First Solar, an American solar manufacturer renowned for its robust market presence, has seen a staggering 26.48% surge in its share value on Wall Street. This substantial uptick came on the heels of a strategic acquisition announcement that promises to augment the company's technological capabilities in the solar energy sector.

The deal involves the procurement of Evolar, a Swedish enterprise known for its development of thin film for solar panels. First Solar is set to invest up to $80 million in this acquisition, with an upfront payment of $38 million and an additional $42 million contingent on the attainment of specific technical benchmarks. The transaction is anticipated to expedite the evolution of photovoltaic (PV) technology, thereby enriching the next generation of solar energy solutions.

Mark Widmar, the CEO of First Solar, expressed his enthusiasm for this acquisition. "We are investing not only in the future of First Solar, but in the future of solar energy," he said. This strategic move aligns with the company's ongoing commitment to research and development (R&D), which is further exemplified by their new innovation center in the US.

First Solar's market capitalization stands at a formidable $24.2 billion, with its stock currently trading at $226.5. The announcement of this acquisition has also positively influenced the trading of other sector shares, including Solaredge and Appenize.

First Solar's acquisition of Evolar complements its existing R&D activities, focusing on thin-film semiconductors that align with its CadTel technology. The integration of both companies' capabilities, intellectual property portfolios, and expertise in developing and scaling thin film PV promises significant strides in the sector. This merger aims to foster high-efficiency tandem devices, underscoring First Solar's commitment to ultra-low carbon, responsibly produced solar power.

Interestingly, Evolar's research laboratory in Sweden will persist in conducting research post-acquisition, marking First Solar's first foray into European R&D facilities. Widmar further articulated this transatlantic connection, stating, "We are establishing and leading a uniquely transatlantic effort to develop and commercialize the next generation of PV."

This acquisition is part of a broader expansion strategy that First Solar has been employing. In an earlier announcement, the company disclosed plans to invest $270 million in a new R&D facility in Perrysburg, Ohio, to supplement its global PV manufacturing initiatives. The company's future bookings have been on an upward trajectory, recording 48.3GW in 2022, a 30.8GW increase from the previous year. The backlog for future deliveries is currently at 67.7GW, with 12GW secured since its last earnings call.

The deal with Evolar is expected to enhance First Solar's efforts to develop tandem PV technology, combining the former's unique expertise with First Solar's existing R&D capabilities and intellectual property. Evolar, founded in 2019, focuses on manufacturing equipment to commercialize tandem solar technology with perovskite thin films. Its proprietary evaporation technology allows it to apply a thin-film layer of perovskite, known as "PV Power Booster" technology, to increase cell energy yield by 25% at minimal cost. The company is also in the process of launching its turnkey production line for perovskite cells, which can be integrated into silicon production lines to upgrade tandem cell production.

Notably, Evolar's encapsulated, semi-transparent standalone perovskite modules have passed a series of industry-standard accelerated reliability tests, suggesting a potential outdoor lifespan of up to 25 years. The company currently holds the world record for CIGS research solar cells with an efficiency of 23.6%. It collaborates closely with Uppsala University and has established a research laboratory in Uppsala, Sweden 

, which will continue its operations following the acquisition. This move represents First Solar's initial venture into establishing a research and development (R&D) footprint in Europe.

The acquisition is expected to bring along approximately 30 of Evolar's R&D staff members. These new additions to the First Solar family will be joining forces with a team of around 60 scientists at the company's research technology center in Santa Clara, California, and its development teams in Perrysburg, Ohio. This integration is aimed at fostering a rich collaborative environment that can further the shared vision of both companies for advancing solar technology.

Notably, the Perrysburg facility, which marked an investment of up to $370 million announced in October 2022, is one of the most significant of its kind in the Western hemisphere. This state-of-the-art facility is slated for completion by 2024 and is expected to play a pivotal role in accelerating the development and production of advanced thin film PV and tandem PV modules.

By pooling the capabilities of Evolar and First Solar, the new entity is poised to take a leap forward in terms of technological innovation. Evolar's groundbreaking "PV Power Booster" technology, which employs a thin-film layer of perovskite to increase cell energy yield by 25%, will be a significant addition to First Solar's technology portfolio. Furthermore, Evolar's current efforts towards the commercialization of a turnkey production line for perovskite cells will be instrumental in optimizing the production of tandem solar cells.

Evolar's track record for innovation is impressive, holding the current world record for CIGS research solar cells with an efficiency of 23.6%. First Solar's acquisition of such an innovator aligns with its mission of pushing the boundaries of solar technology and responsibly producing ultra-low carbon solar power.

In conclusion, First Solar's acquisition of Evolar signifies an exciting time for the solar industry. As companies continue to invest heavily in research and development, breakthroughs are becoming increasingly frequent, leading to improved efficiency, decreased costs, and a brighter future for renewable energy. The commitment of First Solar to accelerating the development of next-generation PV technology through strategic acquisitions, such as Evolar, exemplifies the proactive approach needed to ensure a sustainable future for all.