Liquid crystal cells with LiNbO3:Fe crystals as substrates, are described. The photovoltaic field generated by the substrates is able to reorient the liquid crystal director thus giving rise to a phase shift on the light propagating through the cell, as in liquid crystal light valves. The process does not require the application of an external electric field, thus being potentially useful for applications requiring a high degree of compactness. An efficient optical switch with a high transmission contrast, based on the described optically-induced electric field, is also proposed
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