Tesla Motors (TSLA), Panasonic To Manufacture Solar Cells, Modules Jointly In Buffalo Facility

U.S. electric car maker Tesla Motors and Japanese multinational electronics corporation Panasonic announced Tuesday they have entered a partnership to manufacture photovoltaic (PV) cells and other solar modules jointly at Tesla’s factory in Buffalo, New York.

At present, the “high-efficiency PV cells and modules will be used to produce solar panels in the non-solar roof products. 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. All of these solar products will work seamlessly with Tesla’s energy storage products, Powerwall and Powerpack,” said a statement available on both companies’ websites.

Production of the first PV cells under the partnership is expected to begin in summer 2017, and the capacity of the Buffalo factory will be increased to 1 gigawatt of solar module production by 2019.

The statement also said Panasonic will cover the required capital costs for the Buffalo factory, which Reuters reported to be over $256 million. In return, Tesla has made fresh long-term purchase commitments to Panasonic. The two companies already collaborate on the production of battery cells at Tesla’s Gigafactory that are used both in its electric vehicles and grid storage. Panasonic is the exclusive supplier for Tesla’s Model S and Model X vehicles, as well as for the upcoming Model 3.

Tesla also reaffirmed its commitment to create over 1,400 jobs in Buffalo through SolarCity, at least 500 of which will be in manufacturing. Panasonic will also collaborate with SolarCity on developing next-generation PV technology at the company’s Fremont, California, facility.

Elon Musk, CEO of Tesla Motors, is also on the business advisory team that will work with the administration of President-elect Donald Trump, who has said he wants to stop U.S. jobs from leaving the country. Trump, who has already publicly shamed companies for wanting to move jobs outside the U.S., will certainly approve of the expansion of the Buffalo facility and the creation of jobs there.

The news came after the Tokyo Stock Exchange had closed for trade Tuesday, where Panasonic shares fell 0.65 percent. Shares of Tesla had closed 2.35 percent higher on Nasdaq on Monday, but were 0.11 percent lower during pre-market trade at 5:11 a.m. Tuesday.