Reliance New Energy (RNEL), a wholly-owned subsidiary of Reliance Industries, has signed a pact to acquire 20% stake in Caelux, a U.S.-based solar technology company, for $12 million. The investment is part of the RIL’s strategy to create an advanced green energy manufacturing ecosystem as it plans to set up a global scale integrated photovoltaic Giga factory at Jamnagar, Gujarat. It will also strengthen Reliance’s leadership in advanced solar cell technology.

The transaction will not require any regulatory approval and is expected to be completed by the end of September 2022, subject to satisfaction of certain conditions, RIL says in a release today.

Caelux is engaged in the research and development of perovskite-based solar technology. Its proprietary technology enables high-efficiency solar modules that can produce 20% more energy over the 25-year lifetime of a solar project at significantly lower installed cost.

“Reliance New Energy has signed definitive agreements to invest in Caelux Corporation, a company headquartered in Pasadena, California, in the United States of America, engaged in the development of perovskite-based solar technology. RNEL will invest USD 12 million to acquire a 20% stake in Caelux,” RIL says in a BSE filing.

As per the release, the investment will accelerate product and technology development for Caelux, including construction of its pilot line in the U.S., for expediting the commercial development of its technology.

Besides, RNEL and Caelux have also entered into a strategic partnership agreement for technical collaboration and commercialisation of Caelux’s technology.

“Reliance is setting up a global scale integrated photovoltaic Giga factory at Jamnagar, Gujarat. Through this investment and collaboration, Reliance will be able to produce more powerful and lower cost solar modules leveraging Caelux’s products,” the filing adds.

Commenting on the development, Mukesh Ambani, Chairman and Managing Director, Reliance Industries says, “The investment in Caelux aligns with our strategy to create the most advanced green energy manufacturing ecosystem, backed by world class talent, and built on the pillars of technological innovation achieved through strategic partnerships.”

“We believe Caelux’s proprietary perovskite-based solar technology provides us with access to the next leg of innovation in crystalline solar modules. We will work along with the team at Caelux to accelerate its product development and commercialisation of its technology,” he says.

Scott Graybeal, CEO of Caelux Corporation, says, “Caelux is proud to have Reliance as a lead investor as we move to the next phase of our development and are grateful for Khosla Ventures’ support of the company over the years. Through the partnership with Reliance, we will accelerate our efforts to build out our manufacturing capabilities to produce products that make crystalline solar modules more efficient and cost effective. We look forward to demonstrating the future of solar power at a scale as we support Reliance’s global expansion plans and product roadmap.”

Mukesh Ambani, in his address to shareholders at the company's 45th annual general meeting last month, announced setting up a Giga Factory in Gujarat for photovoltaic panels, energy storage, green hydrogen, and for fuel cell systems. Earlier this year, the conglomerate had signed an agreement with the Gujarat government to invest ₹5.95 lakh crore in green energy projects as well as other existing and new ventures across the state. The Memorandum of Understanding was signed with the state government as part of Investment Promotion Activity for Vibrant Gujarat Summit 2022.

Following the announcement, the share price of Reliance Industries was trading 0.65% lower at ₹2,469.65, in sync with the broader market. The BSE benchmark Sensex was down 600 points to 58,519 levels, with 18 of its shares floating in negative terrain, led by Power Grid Corporation, M&M, HDFC, Axis Bank, and IndusInd Bank.

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.