It will be investing $256 million in Tesla’s plant in Buffalo, NY which will manufacture solar photovoltaic cells and modules.
Panasonic Corp is set to invest $256 million (30 billion yen) in Tesla New York facility which will make photovoltaic (PV) cells and modules.
The development deepens Panasonic’s partnership with Tesla Motors.
Tesla’s shares reacted to the news by rising by 3.5% to $220.75 in early trading.
Panasonic is increasingly focusing on making automotive components and other businesses which cater to corporate clients and is retreating from low-margin consumer electronics.
It has already got a firm commitment from Tesla for a long-term purchase, as part of the deal, besides getting access to infrastructures and factory buildings.
Both companies have formed a pact which revolves around solar energy and related technologies. They have however not disclosed any investment details.
Panasonic’s batteries will sit in Tesla’s upcoming Model 3 car, which will be Tesla’s first mass-market car.
Panasonic also supplies batteries for Tesla’s Model S and Model X.