On Tuesday Tesla announced that it had struck a deal with Panasonic to produce photovoltaic cells at the new Buffalo, New York, solar panel factory scheduled to go online in 2017. The factory’s construction was started by SolarCity, which was purchased by Tesla in November in a $2.6 billion all-stock deal.
Tesla had teased the announcement in October, but the electric vehicle and stationary battery maker noted that the deal would fall through unless investors approved the SolarCity purchase.
Reuters now reports that Panasonic is investing $256 million in the factory. In a blog post, Tesla wrote that “Panasonic will cover required capital costs in Buffalo and Tesla is making a long-term purchase commitment from Panasonic.” The deal is similar to the partnership between Tesla and Panasonic at the Gigafactory, a $5 billion battery factory outside of Sparks, Nevada, that has been ramping up production throughout the year.