Sekisui intends to execute a phased investment strategy, starting with 90 billion yen to establish a 100-megawatt production facility by 2027, and subsequently a gigawatt-class production facility by 2030.

On Thursday, Japan’s Sekisui Chemical announced its intention to start large-scale production of next-generation perovskite solar cells (PSCs) by 2027.

Sekisui, in collaboration with the Development Bank of Japan (DBJ), will create a new company in early January to design, manufacture, and sell PSCs under a license from Sekisui Chemical.

The overall project expenses are expected to exceed 310 billion yen ($1.97 billion), with half of the financing sourced from government grants.

PSCs, being thin and flexible, are regarded by researchers as a possible inexpensive alternative for silicon cells, as they could minimize the space needed for panels that generate power from the sun’s rays.

“Leveraging its lightweight and flexible characteristics, we aim to promote its adoption primarily in the public sector, such as gymnasiums that serve as evacuation centers during disasters,” the company said.

“We plan to expand our business by reducing costs through mass production while driving demand by targeting roofs and exterior walls of private-sector factories and warehouses,” it added.

The new enterprise, to be 86% owned by Sekisui Chemical, will buy and utilize facilities at Sharp’s plant located in Sakai, western Japan.

Japan finalised a draft fundamental energy policy on Wednesday, which aims to increase renewable energy to represent up to 50% of the electricity mix by fiscal 2040 as it pursues a clean energy initiative while addressing growing power demand.