Japan’s Sanyo Electric plans 170 billion yen ($1.8 billion) in capital spending for its rechargeable battery and solar cell operations for the next three years, in a bid to meet fast-growing demand for green energy sources.

Sanyo, the world’s No1 rechargeable battery maker and 13th largest in solar cells, said the amount accounts for about 60 per cent of its total capital expenditure of 290 billion yen earmarked for the three years to March 2013.

Of the 170 billion yen, Sanyo, majority owned by Panasonic Corp, will set aside 50 billion yen for solar cells and 120 billion yen for rechargeable batteries.

“We are striving to be a leader in the Panasonic group’s energy and environment-related businesses,” Sanyo president Seiichiro Sano told a news conference.

Sanyo’s spending plan, however, is dwarfed by the investment strategy by Samsung Electronics, which said earlier it would invest $20.6 billion by 2020 in new businesses including health care and green energy technology.

Sanyo plans to start solar cell production at Panasonic’s panel plant by early 2013, Sano said.

His comment comes after Panasonic president Fumio Ohtsubo said the parent company may convert one of its plasma panel plants into a solar cell factory. Panasonic is the world’s largest plasma TV maker.