Specifically, these new sites will expand Asahi’s capacity to build electrolysis cell frames and membranes.

The facilities are expected to supply both alkaline electrolysis systems for clean hydrogen production and ion-exchange membrane chlor-alkali electrolysis systems that are used to manufacture chlorine and caustic soda.

The expansion was selected for financial support of up to ¥11.4 bn ($73m) last December, under the Japanese Ministry of Economy, Trade, and Industry’s GX Supply Chain Development Programme.

“This investment strengthens vertical integration across key materials for hydrogen and chlor-alkali markets, enhancing stable supply to meet future market growth,” Asahi said in a statement.

Asahi’s Kenji Takeda added the sites will enable the Japanese firm to “respond flexibly to both the clean hydrogen and basic chemical markets.”

Takeda continued, “We will continue to maximise efficiencies between these key businesses, striving to become a core player in the GX supply chain through stable supply, technological innovation, and long-term strategic growth.”

Asahi’s commitment to building component manufacturing sites is part of its wider ambitions to capture 20% of the Japanese hydrogen market share.

Last January, the technology firm announced plans to scale its component manufacturing to at least 2GW.