Panasonic will invest over $256 million USD (or 30 billion yen) toward Tesla’s solar initiatives.
The investment will be directed towards the company’s New York-based photovoltaic (PV) cells and modules production facility. PV cells are also known as solar cells, which speaks to Tesla’s several solar initiatives.
The Japanese consumer electronics company will deepen its partnership with Elon Musk’s auto manufacturer through the investment. As part of the agreement, the electric car company will receive a long-term purchase commitment from Panasonic.
A joint statement reveals that the two tech companies plan to start the production of PV cells in the summer of 2017 and increase to one gigawatt of module production by 2019, reports Entrepreneur.
This agreement continues the longstanding partnership between Panasonic and Tesla. The consumer electronics provider is the exclusive provider of batteries for the company’s first mass-market vehicle, the Model 3, as well as its predecessors, the Model S and Model X.
In addition to being the most well-known provider of electric vehicles, Tesla has taken several steps towards the integration of sustainable energy models. This past November, it was revealed that Tesla is powering the entire island of Ta’u in American Samoa using solar energy.
This news surfaced just days after the completion of Tesla’s acquisition of SolarCity, an American company that specializes in solar energy services and that was co-founded by two of Musk’s cousins.