Japanese companies are turbocharging their efforts to mass-produce perovskite solar cells—a home-grown technology widely tipped to become the leading generation of photovoltaics. With robust backing from the government, domestic firms are racing to commercialize these light, thin, and flexible cells, though they face stiff competition and market dominance from Chinese manufacturers.

Strategic Shift Toward Economic Security

Perovskite solar cells have been designated as a key product under the 17 strategic fields supported by Prime Minister Sanae Takaichi’s administration. While traditional solar cells rely heavily on silicon—an element predominantly produced by China—perovskite utilizes iodine as a primary raw material. Because Japan ranks as the world's second-largest producer of iodine behind Chile, perovskite offers a promising carbon-free power source with significantly lower economic security risks.

Industry Leaders Scale Up Production

Several Japanese pioneers are actively building out their manufacturing infrastructure:

EneCoat Technologies: In late September, the Kyoto University spinoff held a completion ceremony for its new headquarters and manufacturing plant in Uji, Kyoto Prefecture. Chief Executive Officer Naoya Kato expressed ambitions to make the technology a widespread "power source found anywhere." Set to begin production next year and operate at full scale by 2028, the facility targets an annual capacity exceeding 10 megawatts, focusing on building exteriors, vehicles, and clocks. EneCoat currently develops film-type cells boasting an energy conversion efficiency rate of 17.7%—reportedly the highest for this cell type in Japan.
Panasonic Holdings Corp.: Tapping into government subsidies, Panasonic is soon launching a mass-production technology development facility in Nagahama, Shiga Prefecture. The company specializes in glass-type perovskite solar cells designed to blend seamlessly with building architecture and cityscapes. While aiming for commercial mass production around fiscal 2030, Yukihiro Kaneko, general manager of the Perovskite Photovoltaics Business Promotion Office, noted that internal discussions are underway to accelerate this timeline.
Sekisui Chemical Co.: Having launched its film-type perovskite brand "Solafil" in March, Sekisui Chemical plans to commence operations at a major plant in Sakai, Osaka Prefecture, by fiscal 2027. The facility will boast a production capacity of 100 megawatts—equivalent to the annual electricity consumption of approximately 31,000 households.

The Global Competition and the Road Ahead

According to market research firm Fuji Keizai Co., the global perovskite market is projected to surge to approximately ¥3.6 trillion by 2040, representing an 80-fold increase from 2025. Currently, Chinese enterprises such as Kunshan GCL Optoelectronic Materials Co. and UtmoLight Co. hold the lion’s share of the market.

"China’s government and local governments provide generous subsidies and preferential treatment, creating an environment more conducive to making massive capital investments," pointed out Chiharu Ando of Fuji Keizai.

Ultimately, whether Japanese companies can carve out and expand their market share will depend heavily on their ability to differentiate their products through superior versatility and durability.

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