Tesla and Panasonic to produce PV cell and modules in New York

16 October 2016 (Last Updated October 16th, 2016 18:30)

Tesla and Panasonic have signed a non-binding letter of intent for manufacture and production of photovoltaic (PV) cells and modules in Buffalo, New York, US.

Tesla and Panasonic have signed a non-binding letter of intent for manufacture and production of photovoltaic (PV) cells and modules in Buffalo, New York, US.

Under the agreement, Tesla will use cells and modules in a solar energy system that will work with Powerwall and Powerpack, which are its energy storage products.

The agreement is based on shareholders' approval of Tesla’s purchase of SolarCity.

With the help of installation, sales and financing capabilities from SolarCity, Tesla will bring an integrated sustainable energy solution to residential, commercial, and grid-scale customers.

"We will be able to accelerate production of high-efficiency, extremely reliable solar cells and modules."

Tesla chief technical officer and co-founder JB Straubel said: “We are excited to expand our partnership with Panasonic as we move towards a combined Tesla and SolarCity.

“By working together on solar, we will be able to accelerate production of high-efficiency, extremely reliable solar cells and modules at the best cost.”

Panasonic plans to begin PV cell and module production at the Buffalo facility by next year.

Tesla intends to provide a long-term purchase commitment for those cells from Panasonic.

Eco Solutions vice-president Shuuji Okayama said: “Panasonic PV cells and modules boast industry-leading power generation performance, and achieve high-quality and reliability. We expect that the collaboration talks will lead to growth of the Tesla and Panasonic relationship.”

Tesla and Panasonic's collaboration will also see production of electric vehicle and grid storage battery cells at Tesla’s Gigafactory.