Panasonic to invest $256 Million in Tesla's solar cells plant
Dec 29, 2016 11:14 AM EST
Osaka-based Company Panasonic Corp will invest more than 30 billion yen ($256 million) on the installation of production equipment for manufacturing solar cells and modules at Tesla's factory in Buffalo, New York, said spokeswoman Yayoi Watanabe.
The agreement is said to eventually bringing some 1,400 jobs to the region. In a joint statement on Tuesday, the two companies announced to start production of PV modules in the summer of 2017 and increase to 1 gigawatt of module production by 2016.
According to Economic Times, the plan is part of the solar partnership that the two companies announced last October but without disclose investment details.
Tesla shares which declined about 8.2 percent this year have rose 3.5 percent to $220.75 in early trading on Tuesday.
Reuters reported that the U.S electric car maker is making a long-term purchase commitment from Panasonic as part of the deal besides providing buildings and infrastructures.
"When production of the solar roof begins, Tesla will also incorporate Panasonic's cells into the many kinds of solar glass tile roofs that Tesla will be manufacturing," Tesla said in a blog post.
Apart from the solar roof, there is a huge anticipation around the Model 3, a more affordable electric sedan car that is expected to launch next year. Telsa is also working on a semi-truck and a transit bus. Panasonic is also the exclusive supplier of batteries to Tesla's Model S and Model X.
In June 2014, SolarCity announced the acquisition of Silevo, a solar technology start-up that hoped to make high-efficiency solar panels in a plant in Buffalo, New York. The payment for the plant involves some $750 million subsidy in exchange for commitments to meet minimum investments and hire workers in the state.
But in the summer of 2016, as part of the acquisition of SolarCity, Tesla announced plans to bring in Panasonic to make solar cells using technology similar to Silevo's