Panasonic announced that they will invest over $256 million into Tesla’s New York production facility to make photovoltaic (PV) cells and modules. This investment will strengthen the partnership between the two companies.
Panasonic will invest in Teslas’s factory in Buffalo, New York, as they have been pulling away from consumer electronics with low margins to focus on automotive components, as well as aiming for corporate clients in other businesses.
As part of the deal, Elon Musk’s Tesla will make a long-term purchase commitment from Panasonic, in addition to providing infrastructure and factory buildings.
On Tuesday, Tesla and Panasonic said in a joint statement that they are planning to start the production of PV modules in summer of 2017, and by 2019, they will increase to one gigawatt of module production.
This investment by Panasonic is part of the partnership that was first announced back in October between the two companies, however, it didn’t publish the details of the invest.
The US electric car maker has been working with Panasonic to supply batteries for the upcoming Model 3, which is Tesla’s first mass-market car. The long-time partner is also the supplying batteries to the Tesla Model S and Model X.