The move is part of a broader push by the chemical industry to supply solar cell producers with technologies to make the renewable energy source more efficient.
DuPont hopes sales of all its solar products will exceed $1 billion by 2012, it said.
The project will help DuPont produce more Tedlar, a product used in the backing of solar cells.
The company says Tedlar can stand up to moisture, ultraviolet rays and inclement weather.
The Wilmington, Delaware-based company will spend about $100 million to boost production capacity at existing plants in Louisville, Kentucky, and Fayetteville, North Carolina, starting in 2010.
About $20 million will be used to build a production plant at a site to be determined, a company spokesperson said.
When combined, the projects are expected to boost Tedlar production by 50 percent.
Earlier this year DuPont completed a similar expansion project that more than doubled Tedlar production.