Panasonic will produce solar cells and solar panels for Tesla at a SolarCity factory in Buffalo.
Tesla Motors announced Sunday that they plan a collaboration with Panasonic Corp to produce solar cells and solar modules (solar panels) in a factory in Buffalo, New York.
Panasonic already works in partnership with Tesla Motors because they are the suppliers of the battery pack for the long-awaited Tesla Model 3, which Tesla expects to become the electric vehicle of the masses.
The agreement, which is actually a non-binding letter of intent, cannot be fulfilled without the approval of Tesla’s shareholders regarding the acquisition of the SolarCity Corp by the company.
The financial terms of the agreement are not public, but a few officials in New York stated that the future production of solar cells and solar panels would take place in a new factory built by SolarCity in Buffalo.
Officials said that Panasonic would start next year (2017) the production of the solar cells and solar modules at the Buffalo factory.
Tesla company is already providing the energy storage products called Powerwall and Powerpack, and with the help of the new agreement, hopes to use the solar cells and modules produced by Panasonic to create a solar energy system that will work along with its energy storage products.
In 2015, SolarCity announced that they will manufacture a new type of solar cell that would be the most efficient solar cell created ever, at transforming the sunlight into solar energy.
A Panasonic spokeswoman did not agree to provide details regarding the collaboration between the two companies.
SolarCity Corp and Tesla shareholders will vote on the proposed merger of the two companies on Nov 17, 2016, but before that, Tesla Motors will provide plans of the combined company to its shareholders.