Panasonic is deepening its partnership with Tesla with an investment worth $256 million. The Japanese company has confirmed that it’s investing $256 million in Tesla’s solar cell manufacturing plant in New York. The investment is being made to aid the production of photovoltaic cells and modules. Tesla’s solar cell factory is located in Buffalo, New York.

Panasonic Corp. confirmed earlier today that it has decided to invest 30 billion yen ($256 million) in a New York-based production facility of Tesla to make PV cells. This shows that the two companies are expanding their existing partnership.

The two companies already have a very strong partnership. Panasonic is the exclusive supplier of batteries fro the Tesla Model S and Model X. The carmaker is also working with Panasonic exclusively on batteries for its first mass-market electric car, the Model 3.

The Japan-based company has increasingly been focusing on automotive business and other business where it sees future growth. It has been gradually retreating from low-margin consumer electronics devices. This is merely an investment in the future of mobility which is surely going to include electric vehicles, and Tesla is going to be a big part of that future.

The deal includes Tesla making a long-term purchase commitment from Panasonic. It’s also going to provide factory buildings and the infrastructure required. Tesla and Panasonic are planning to start production of PV modules by the summer next year. They plan to increase to one gigawatt of module production by 2019.

Filed in General.. Source: reuters

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