Electronics giant Panasonic Corp announced that it plans to invest more than 30 billion yen or $256 million in a production facility of U.S. electric car-maker Tesla Motors Inc. (NASDAQ:TSLA) to make photovoltaic (PV) cells and modules, extending a corporation of the both companies.
Japan’s Panasonic, recently had been withdrawing from low-margin consumer electronics to emphasis more on automotive machineries and other businesses targeting business clients, will make the investment in Tesla’s factory in Buffalo, New York.
Meanwhile Tesla Motors (NASDAQ:TSLA) is making a long-term takeover commitment from Panasonic as part of the agreement, in addition providing factory buildings and infrastructure.
Both Tesla and Panasonic Corp said in a joint statement on Tuesday that they are aiming to start production of PV modules in the summer of 2017 and surge to one gigawatt of module production by 2019.
The strategy is part of the solar partnership that the two firms initially publicized in October, but which did not unveil investment particulars.
Furthermore Tesla Motors (NASDAQ:TSLA) is also working closely with longtime partner Panasonic to produce batteries for its upcoming Model 3, the company’s first mass-market car. Moreover Panasonic is also the special supplier of batteries to Tesla’s iconic Model S and Model X.