Natcore Finalizes Chinese Production Deal

At the heart of the joint venture is Natcore Technology's patented Liquid Phase Deposition (LPD) technology, licensed from Rice University where it was developed. LPD grows an anti-reflective (AR) film on a substrate in a room-temperature chemical bath, potentially making solar cells significantly cheaper and cleaner to produce. Existing technology uses a high-temperature vacuum furnace to grow the coating, requiring much more energy in the process and much more silicon to achieve the thickness needed to withstand the firing.

The new company, Natcore China, is a joint venture between Natcore Technology, the Zhuzhou Hi-Tech Industrial Development Zone, a government-supported zone in Hunan province, and Chuangke Silicon Ltd., a polycrystalline silicon producer. Natcore China will be 55% owned by Natcore Technology, with its partners holding the remaining 45%. The agreement is subject to approval by the Toronto Venture Exchange.

Under this agreement, Natcore China will have a life span of at least 20 years. It will have exclusive rights in perpetuity to develop and manufacture the AR coating equipment used in this technology, so long as it meets specified pricing and quality control standards, and to sell it to solar cell producers in China. Natcore China will also have exclusive rights for a period of five years to develop and manufacture this equipment for sale anywhere in the world. The solar cell producers that buy this equipment may sell their output anywhere in the world.

Natcore China will be funded by an initial $3 million investment consisting of US $500,000 contributed by Natcore Technology, and $2,500,000 contributed by the Chinese Partnership.

With the signing of this agreement, Natcore China will immediately begin staffing, retooling and installing equipment in an existing US$250 million facility within the Hi-Tech Zone. They expect that first product shipments will be made within 10 months.

"This agreement with China is a big step toward global commercialization for Natcore and a great benefit for our shareholders," said Chuck Provini, Natcore's president and CEO. "The government, through the Hi-Tech Zone, introduced us to several local technology companies and entrepreneurs. Chuangke Silicon Ltd. emerged as the group with the greatest synergy with our technology, and with the capabilities necessary to finalize development and move quickly into production.