Mitsubishi Electric invests in Solestial to boost space-grade solar cell capabilities

Mitsubishi Electric Corporation has announced that its ME Innovation Fund has made a strategic investment in Solestial, Inc., a U.S.-based space technology startup developing advanced solar cells engineered specifically for space environments. This marks the tenth such investment by the ME Innovation Fund and underscores Mitsubishi Electric’s growing emphasis on strengthening its foothold in the increasingly competitive satellite and aerospace energy systems market.

Why Did Mitsubishi Electric Invest in Solestial?

The move comes as Mitsubishi Electric seeks to future-proof its satellite and space-related business lines by aligning with emerging leaders in solar cell innovation. Solestial, Inc., headquartered in the United States, is advancing the use of silicon heterojunction (HJT) technology for space-grade solar applications, which presents several performance and manufacturing advantages over legacy photovoltaic systems. HJT cells are particularly well-suited for the challenging radiation and thermal environments of space, offering better durability, higher efficiency, and significantly lighter-weight alternatives to traditional gallium arsenide-based modules.

As space becomes increasingly commercialised, especially in low Earth orbit (LEO), Mitsubishi Electric is positioning itself to capitalize on demand for next-generation power systems that can meet the high-frequency launch cycles and operational constraints of satellite constellations. The partnership with Solestial is expected to facilitate access to agile, cost-effective, and resilient solar energy components optimized for such deployments.

What Is Solestial’s Core Technology and Why Does It Matter?

Solestial’s silicon-based solar cells rely on heterojunction technology—a structure that combines crystalline silicon with thin amorphous silicon layers to deliver higher conversion efficiencies. This architecture not only improves energy output per square centimeter but also enhances resistance to degradation caused by high-energy particle exposure in space. The technology is emerging as a viable replacement for incumbent triple-junction solar cells, which are expensive and time-consuming to manufacture.

By offering rapid production turnaround, lower cost per watt, and high-volume scalability, Solestial is targeting the exponential growth in demand driven by commercial satellite constellations, Earth observation missions, and future lunar infrastructure projects. The company’s business model is based on manufacturing solar sheets on Earth and preparing them for seamless in-space integration, eliminating the need for on-orbit solar cell assembly or complicated power subsystem deployment.

How Does This Fit Into Mitsubishi Electric’s Space Strategy?

Mitsubishi Electric has long been a key player in the aerospace and satellite manufacturing sectors, offering services ranging from satellite development to launch support and post-launch operations. However, the rise of NewSpace actors—private sector companies leveraging agile, cost-efficient platforms—has challenged legacy providers to evolve their value propositions. The investment in Solestial signals Mitsubishi Electric’s intent to enhance vertical integration across the space value chain, particularly in power solutions.

By integrating Solestial’s technology into its satellite platforms, Mitsubishi Electric stands to benefit from a differentiated offering, enabling clients to adopt lighter, cheaper, and more power-dense spacecraft. In the broader context of the company’s portfolio, this partnership could also aid in expanding its position in the global satellite exports market, which is becoming increasingly saturated with low-cost alternatives from the U.S., China, and Europe.

According to statements released by Mitsubishi Electric, the ME Innovation Fund will continue to scout startups whose technologies offer strong synergies with the conglomerate’s core domains, including energy systems, factory automation, mobility, and space technology.

What Are Analysts Saying About the Investment?

Industry observers view this move as a calculated step by Mitsubishi Electric to remain competitive in the space technology race. The investment aligns with larger global trends where aerospace incumbents are partnering with nimble, tech-forward startups to inject innovation into traditional supply chains. The growing urgency to find scalable solutions for energy generation in space is being driven by megaconstellation programs, including SpaceX’s Starlink and Amazon’s Project Kuiper.

Investor sentiment toward Mitsubishi Electric’s innovation-led diversification has generally been positive, particularly since the company has signaled plans to allocate more capital towards advanced materials, power electronics, and AI-enhanced manufacturing through its corporate venture fund. Although the financial terms of the Solestial deal were not disclosed, the ME Innovation Fund’s approach generally focuses on early-stage minority stakes, providing strategic collaboration without assuming operational control.

Margo de Naray, Chief Executive Officer of Solestial, noted in a statement that the collaboration with Mitsubishi Electric is expected to expedite technological development. The startup, which has raised capital from other space-focused venture investors in the U.S., believes the partnership with Mitsubishi will serve as a validation milestone and open up access to Asian satellite and aerospace customers.

How Is the Broader Satellite Market Shaping This Collaboration?

The global satellite sector is undergoing a rapid transformation driven by three key factors: constellation scaling, launch cost reduction, and modular system standardization. As satellite platforms shrink and proliferate, power systems must evolve to meet tighter form factors and energy demands. The deployment of thousands of small satellites in LEO has created a bottleneck in reliable, space-hardened solar cells, offering startups like Solestial a distinct opportunity.

Moreover, geopolitical factors have led to a surge in space-related investments as countries look to secure independent access to orbital infrastructure. Japan’s government, in alignment with its space policy roadmap, has encouraged domestic giants like Mitsubishi Electric to strengthen their competitive edge via international collaborations and startup partnerships. The strategic emphasis is on fostering dual-use technologies that support both commercial ventures and national security objectives.

What’s Next for Solestial and Mitsubishi Electric?

As Solestial scales up its production capabilities, integration with Mitsubishi Electric’s supply chain could provide access to better materials sourcing, manufacturing throughput, and global marketing channels. For Mitsubishi Electric, leveraging Solestial’s agile R&D and short-cycle innovation is expected to support product differentiation across satellite and space energy portfolios.

Industry insiders suggest that future joint development projects may include adapting Solestial’s technology for long-duration missions beyond LEO, including lunar surface arrays and Martian orbital systems. The space energy segment is also being increasingly eyed by terrestrial renewable energy developers seeking high-durability solar technologies for harsh environments on Earth.

With the commercial space industry forecast to exceed $1 trillion in valuation by 2040, stakeholders are intensifying efforts to own key enablers—solar power among the most critical. If successful, Mitsubishi Electric’s bet on Solestial may not only bolster its space division’s competitiveness but also catalyse a broader shift in solar energy innovation.