Sekisui Chemical Eyes Acquisition of Sharp’s Osaka Plant for Solar Battery Production

Sekisui Chemical Co. is considering acquiring a portion of Sharp Corp.’s plant in Osaka Prefecture with plans to transform the facility into a production hub for next-generation solar batteries, sources familiar with the matter said Wednesday.

The Japanese chemical company aims to manufacture perovskite solar cells at the site. These lightweight, flexible solar batteries are designed for use in areas where traditional solar panels cannot be installed, such as curved surfaces and the exteriors of buildings.

Perovskite solar cell technology has garnered significant attention in recent years due to its potential to dramatically boost solar power generation. Japan’s Ministry of Economy, Trade, and Industry is expected to subsidize the project, as it aligns with the country’s decarbonization goals, according to sources.

Perovskite solar cells are primarily made from iodine, and Japan is the world’s second-largest producer of the element. This positions the country well to develop domestic supply chains for the technology, bolstering Japan’s economic security.

“We cannot comment on the reported plan as nothing has been decided yet,” a Sekisui Chemical representative told Kyodo News.

Sharp, which ceased large-scale liquid crystal display (LCD) panel production at the Sakai plant in August, had been struggling with the unprofitable business. The factory was Japan’s last remaining production facility for television LCD panels.

In June, Sharp announced plans to convert part of the plant into one of the largest artificial intelligence (AI) data centers in Asia in an effort to revitalize its operations.

SoftBank Corp. is also in discussions with Sharp to acquire part of the plant to build its own AI data center. However, the portion of the factory Sekisui Chemical is interested in does not overlap with the area SoftBank is targeting, the sources confirmed. Sekisui Chemical is also considering utilizing existing equipment at the site, such as clean rooms.

The move marks an important step in Japan’s efforts to expand renewable energy production and strengthen its high-tech manufacturing capabilities amid growing demand for clean energy solutions.