Panasonic Corp will invest over 30 billion yen ($256 million) in a production center of Tesla Motors to make photovoltaic (PV) cells and modules, expanding a collaboration of the two companies.
Tesla’s shares increased 3.5 percent at $220.75 in early trading on Tuesday.
Panasonic, which has been pulling back from low-margin consumer electronics to focus more on automobile elements and other organisations targeting corporate clients, will make the investment in Tesla’s factory located in Buffalo, New York.
The United States electric vehicle maker is making a long-lasting purchase commitment from Panasonic as part of the deal, besides supplying factory buildings and infrastructure.
In a declaration on Tuesday, the two companies stated they prepare to start production of PV modules in the summertime of 2017 and boost to one gigawatt of module production by 2019.
The strategy is part of the solar partnership that the two companies first revealed in October, although did not reveal investment information.
Tesla is working specifically with longtime partner Panasonic to provide batteries for its upcoming Model 3, the automaker’s very first mass-market automobile. Panasonic is likewise the special provider of batteries to Tesla’s Model S and Model X.
