Tesla, Panasonic announce joint solar panel production deal

Dive Brief:

Tesla and Panasonic have formed a partnership to expand solar panel production out of a factory in Buffalo, N.Y., contingent on Tesla's acquisition of SolarCity moving ahead.
Under the arrangement, Tesla and Pansonic will jointly operate the solar module production factory, and Tesla will purchase the solar cells for use in Powerwall and Powerpack installations it will market through SolarCity.
Panasonic is expected to begin production at the Buffalo factory next year, and Tesla will sign a long-term purchase commitment. The factory will be the largest solar PV plant in North America, according to Greentech Media.

Dive Insight:

Tesla is working to bolster the value proposition behind its bid for SolarCity, and its new partnership with Panasonic is contingent on an expanded business model being put in play.

Tesla has offered to purchase all of SolarCity's stock in a deal valued at $2.6 billion. The companies' shareholders will vote on the transaction on Nov. 17, and if approved it will help create an integrated solar-plus-storage installer with an expanding national market.

Tesla and Panasonic are already working together, including production of electric vehicle and grid storage battery cells at Tesla’s Gigafactory in Nevada. But Tesla Chief Technical Officer JB Straubel said the expanded partnership allows the company to "accelerate production of high-efficiency, extremely reliable solar cells and modules at the best cost.”

In the company's statement, Tesla said the arrangement will help create "fully-integrated energy products for businesses, home owners and utilities."

Greentech Media points out the Buffalo facility is expected to be the largest maker of solar panels in the nation, producing as many as 10,000 a day. Paired with the Gigafactory, Tesla is positioning itself to offer a new line of energy products. The company has scheduled a product launch for tomorrow, and another later this month with SolarCity.

While little is known about this week's announcement, the later event is expected to unveil a solar roof product along with the second version of Tesla's residential Powerwall battery storage product.