Tesla and Panasonic are to work together to manufacture solar cells and panels in New York.
They have entered into a non-binding letter of intent which is subject to shareholder approval of Tesla’s buyout of SolarCity.
The car manufacturer intends to provide a long term purchase commitment for the cells and modules from Panasonic, which will be used in a solar system that works with its energy storage products – Powerwall and Powerpack.
Panasonic is expected to start production in Buffalo next year.
JB Straubel, Chief Technical Officer and Co-founder of Tesla, said: “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.”