Japan has announced a dedicated fund of USD 1.5 billion to advance the commercialization of next-generation ultra-thin and lightweight perovskite solar cell technology. Analysts point out that this strategy could potentially disrupt China’s dominance in the renewable energy sector and help Japan reduce its dependence on fossil fuels.
Perovskite cells, with a thickness one-twentieth that of traditional solar cells, can adhere to curved structures like sports stadiums, airport terminals, and office building facades due to their flexibility. This trait is especially suited for Japan, which has a limited land area and a high proportion of mountainous terrain, potentially overcoming the traditional reliance on open spaces for solar power generation.
Japan has set an ambitious goal: by 2040, it aims to generate electricity equivalent to that of 20 nuclear power plants using perovskite cells, viewing this as a core component of its energy strategy to achieve a 50% renewable energy share. To realize this vision, the government is providing a subsidy of JPY 157 billion (approximately USD 1 billion) to leading technology firm Sekisui Chemical Co., Ltd., for the research and development of perovskite solar films. Additionally, JPY 60 billion has already been allocated for initial technology development, with potential future funding from a dedicated green supply chain fund.
“Perovskite technology is a key ace that balances decarbonization goals, economic growth, and energy security,” emphasized project leader Sadanori Ito. “It will become an indispensable pillar technology for the popularization of renewable energy in Japan.”
Currently, China accounts for 85% of global solar cell production capacity and 79% of polysilicon supply, while Chile and Japan dominate the supply of iodine, a key raw material for perovskite cells. Analysts believe this move will help diversify risks associated with excessive reliance on a single country for critical materials.
However, the initial production cost of perovskite cells is more than three times that of traditional technologies, and the cost reduction potential after mass production remains uncertain. Therefore, high-density cities such as Tokyo, Taipei, and Singapore could become key markets for initial applications.
Yana Hryshko, head of solar research at consulting firm Wood Mackenzie, evaluated Japan’s choice as “pragmatic and necessary.” “There are supply chain security risks in sourcing solar equipment from China, but it must be acknowledged that only China has the capability to rapidly scale up and reduce costs,” she noted, adding that Japan’s focus on a differentiated technological path is “the only chance to regain industry discourse power.”
Composed of multiple chemical layers with a total thickness of just 1 millimeter, perovskite cells can efficiently absorb light energy. There are notable differences in technological approaches between China and Japan: Chinese companies mainly focus on perovskite technology combined with glass encapsulation or silicon cells, while Japan specializes in ultra-thin flexible film research and development.
“The speed and scale of Chinese companies bring tremendous pressure,” admitted Yusuke Sakurai, business development manager for Toshiba’s perovskite operations. “However, our market positions are different, with Japanese technology being more suitable for integration with urban buildings.”
Sekisui Chemical has overcome the core technical bottleneck of perovskite films being susceptible to moisture damage by developing moisture-proof sealing resin. The company plans to invest JPY 310 billion (approximately USD 20 billion) to establish a 1-gigawatt production capacity at a revamped Sharp factory, with half of the funding supported by government subsidies. Based on this scale, costs are expected to be comparable to traditional silicon cells.
In the short term, Sekisui Chemical aims to expand film width from 30 centimeters to 1 meter and achieve an annual production capacity of 100 megawatts by 2027, at which point costs could be reduced to three to four times that of traditional cells. Additionally, the company is developing installation materials suitable for different building surfaces to expand application scenarios.
“If we can overcome the challenges of mass production and installation technology, Japan will have the competitive strength to rival China,” said Futoshi Kamiwaki, president of Sekisui Solar Film Co., Ltd. “This is the last opportunity window to break China’s market monopoly.” Currently, the company has deployed pilot projects at its Osaka headquarters and Tokyo cruise terminal, with plans to export to European and American markets in the future.
Despite promising technology prospects, perovskite cells still face scientific challenges such as stability verification and lifespan testing, as well as complex challenges associated with the reconstruction of the global industrial chain. Whether Japan can achieve a “curve overtaking” through differentiated innovation may profoundly impact the global renewable energy landscape.
