Honda is investing ¥4 billion, or about $35M USD, to enter the thin film solar business.

To be called Honda Soltec, the new company will produce and sell a next-generation thin film solar cell made from copper, indium, gallium and selenium (CIGS), in a process developed by Honda. Approximately 150 people are expected to be involved in Honda Soltec's operations.

At the end of September 2006, Honda began construction of a plant to mass produce solar cells within the current site of Honda’s Kumamoto factory in Japan. The new facility is expected to become operational in fall 2007 with an annual capacity of 27.5 megawatts.

Honda Soltec said it plans to begin sales in limited areas in March 2007. Once mass production begins at the new plant in Kumamoto in fall 2007, the company said it plans to expand sales.

"Honda has been at it a long time, and have had a CIGS program for two or three years," Dave Pearce, CEO of CIGS vendor Miasole, told Cleantech.com. "They're pursuing, I believe, a fairly different approach from Miasole. They're working on a glass-based product, and we're very focused on the flexible features of our solar cells and solar modules." Pearce called Honda's entry healthy for the market.

Miasole is one of many companies with thin film CIGS-based products that are already well along. While Miasole is not yet shipping production film, it is working with customers, it says, including "one in Asia that's placed a fairly large order," said Pearce. Thin film vendor First Solar went public in November (see First Solar still edging up) and other vendors, such as United Solar Ovonic (Uni-Solar) and embattled DayStar Technologies are already shipping product. Hot on their heels are XsunX, Global Solar Energy, Nanosolar, Q-Cells (see Q-Cells fond of CIGS) and others.

Pearce predicted that winners will be determined by execution. "This battle will be won on the manufacturing floor."

Since the company's inception in 1948, Honda has perhaps been best known for devices built around small gasoline engines. It's now substantially more diversified, producing not just vehicles, but robots and light jets.