Registered direct equity offering’s expected proceeds of $72 million with new and existing institutional investors coupled with an expected $50 million convertible preferred is a major step forward for G2_Austin U.S. solar cell manufacturing facility
T1 Energy Inc. is moving forward with plans to start construction of the 2.1 GW first phase of its G2_Austin PV solar cell manufacturing facility before year-end 2025. With the expected proceeds from each of the $72 million registered direct offering and the $50 million convertible preferred announced this week, the Company will soon have a meaningful portion of the capital required to finance the first 2.1 GW phase of the G2_Austin facility, with the remainder expected to be comprised of debt and anticipated customer offtake deposits. The closing of the registered direct offering is expected to occur on or about October 24, 2025, subject to the satisfaction of customary closing conditions and the closing of the convertible preferred share issuance is expected shortly thereafter.
“This is a landmark day for T1 and our growing network of partners, customers, and investors. This equity capital is foundational to constructing G2_Austin, which is the centerpiece of T1’s mission to build an integrated American solar supply chain,” commented Dan Barcelo, Chairman and CEO, T1 Energy. “The transactions announced this week significantly derisk the G2 facility and have positioned us to potentially accelerate long lead time items and to proceed with the initial construction phase of G2 as planned before year-end 2025. As importantly, the support of major new and existing institutional investors is expected to help us build on the momentum we already have with G2 debt capital formation, advanced customer offtake discussions, and other key strategic initiatives.”
- Capital formation expected to trigger Q4 2025 start of construction at G2_Austin. As disclosed previously, T1 is executing a phased development of the G2_Austin PV solar cell fab in Rockdale, Texas, with the first 2.1 GW slated to start construction before year-end 2025. The expected proceeds from the $50 million issuance of preferred stock to certain funds and accounts managed by Encompass Capital Advisors LLC, in combination with the $72 million of expected gross proceeds from the registered direct equity offering, provide T1 with meaningful capital required to fund the facility’s $400 – $425 million of capital expenditures for the first 2.1 GW phase of G2_Austin.
- Planned next steps for G2_Austin development. T1’s G2 facility development team has completed contractor and vendor selection and is progressing with detailed engineering of the customized production line equipment for the G2 first phase. The net proceeds from the transactions announced this week position T1 to accelerate the next stages of development as precursors to the planned start of construction in Q4 2025.
“The transactions we announced this week are meaningful steps forward in the capital formation process to develop the G2 Austin facility,” added Evan Calio, T1’s Chief Financial Officer. “Although we initially planned to focus on securing debt capital as the foundation of the G2 capital stack, interest from new and existing institutional equity investors enabled us to opportunistically reorient the sequence of G2 capital formation.”
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
