Meyer Burger, REC Solar discussing profit share, exclusivity agreement

Singaporean photovoltaics (PV) maker REC Solar Pte Ltd is looking to significantly expand its manufacturing capacity using equipment from Meyer Burger Technology AG (SWX:MBTN) and the two are discussing a new form of collaboration.

The Swiss solar technology firm announced today a memorandum of understanding (MoU) for a strategic collaboration with the REC Group unit, which is looking to lift its HJT/SWCT manufacturing capacity to multiple gigawatts, from 600 MW currently, with the help of Meyer Burger and a potential strategic downstream partner.

Meyer Burger said its customer would be willing to enter into a profit-sharing agreement in exchange for “adequate exclusivity protection” for specific HJT and SmartWire Connection technologies. In the coming months, the companies will be working towards reaching a definitive agreement on the profit share and exclusivity, and seek the green light from their respective boards of directors.

“This new business model is expected to allow Meyer Burger to both benefit from the commercial value of its disruptive high-efficiency technology as well as protect its intellectual property in the coming years, thereby reducing the risk of commoditization which Meyer Burger has experienced in its main markets in the past,” the Swiss company said.

Meyer Burger noted that a longer-term exclusivity agreement would have to be compensated by large equipment orders and a commensurate profit share calculated on the peak capacity of Alpha solar module sales by REC.

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