A SPACE elevator stretching a quarter of the way to the moon is underway thanks to a Japanese firm using cutting-edge nanotechnology.

The 59,651 mile high (96,000km) structure will use carbon nanotube technology, which is more than 20 times stronger than steel, and ferry passengers at 125mph (200kph).

Obayashi Corp claims the elevator would be in place by 2052 and that the elevator would be used for both space tourism and science.

A hotel and station is being planned for the half way mark at 36,000km.

Satomi Katsuyama, the project's leader, said: “Humans have long adored high towers but rather than building it from the earth, we will construct it from the space.”

Obayashi is just days away from completing work on Japan's tallest structure, the Tokyo Sky Tree, which will stand 634m.