Tesla and Panasonic have entered into a non-binding letter of intent under which they will begin collaborating on the manufacturing and production of photovoltaic (PV) cells and modules in Buffalo, New York, the company said Sunday.
Under the terms of the agreement, which is contingent upon shareholders’ approval of Tesla’s acquisition of SolarCity, Tesla will use the cells and modules in a solar energy system that will work seamlessly with Powerwall and Powerpack, Tesla’s energy storage products.
With the aid of installation, sales and financing capabilities from SolarCity, recently acquired by Tesla, the company aims to bring an integrated sustainable energy solution to residential, commercial, and grid-scale customers.
The parties intend for Panasonic to begin PV cell and module production at the Buffalo facility in 2017. Tesla intends to provide a long-term purchase commitment for those cells from Panasonic.
The collaboration extends the established relationship between Tesla and Panasonic, which includes the production of electric vehicle and grid storage battery cells at Tesla’s Gigafactory.
“Panasonic PV cells and modules boast industry-leading power generation performance, and achieve high quality and reliability,” said Shuuji Okayama, Vice-president, Eco Solutions Company of Panasonic. “We expect that the collaboration talks will lead to growth of the Tesla and Panasonic relationship.”