Konica Minolta in ties with Konarka on solar cells

TOKYO, March 2 (Reuters) - Japan's Konica Minolta Holdings (4902.T) said it has joined hands with unlisted U.S. solar energy firm Konarka Technologies to jointly develop and make organic solar cells, challenging established rivals such as Sharp Corp (6753.T).

Organic solar cells are cheaper to make than silicon-based solar cells, which currently dominate the global market. They are also lighter and bendable, making it possible to put solar panels on bags or clothes, so people can charge their PC or mobile phone batteries on the go.

The hurdles facing organic solar cells at present include a lower conversion rate, or the rate at which light is converted into electricity, than conventional silicon-based cells, which have been in mass production for years.

Konica Minolta, an office equipment and high-tech components maker, has spent $20 million to take a 7.5 percent stake in Konarka, whose co-founders include Alan Heeger, a 2000 Nobel prize laureate in chemistry.

Joint production is slated to start in 2013 and Konica Minolta aims for 50 billion yen ($561 million) in sales in 2018.

Shares in Konica Minolta, which competes with Canon Inc (7751.T) and Xerox Corp (XRX.N) in copiers and printers, closed up 0.2 percent at 929 yen, compared with a 0.5 percent gain in the Nikkei average .N225.

(Reporting by Kiyoshi Takenaka)