Tesla, Panasonic Strengthen Deal, to Produce Solar Cells in New York
Billionaire and renewable energy tycoon, Elon Musk, announced the launch of Tesla's solar roofs earlier this year. For Tesla, to continue growing in 2017, the company has to produce a good number of solar cells, storage solutions and other types of batteries next year. This is where Panasonic came to play who is expected to produce components from a plant in Buffalo.
Tesla already tapped Panasonic with regard to the production of Tesla solar cells. To keep up with the growing demand for clean energy products such as solar cells, Tesla and Panasonic will be producing solar cells in New York City.
The two companies reportedly agreed on a deal that will benefit the interest of both. Production is expected to begin in mid-2017, according to CNBC.
The latest development will not only increase the solar cell production but will also strengthen the collaboration between the Japanese electronics company, Panasonic, and Tesla.
Reports say that a factory in Buffalo in New York will serve as the manufacturing center for Tesla's solar cell components for the solar roofs. Solar roofs are expected to cut the cost spent by homeowners by replacing traditional roofing materials with solar cells. The solar cells would supposedly lessen the use of fossil fuel for energy.
The best part is that Musk claims that Tesla solar roof will cost cheaper than traditional roofing materials despite its added energy-harvesting capabilities.
Because of the enticing potential of Tesla's solar roof, the surge in demand is also expected. "When production of the solar roof begins, Tesla will also incorporate Panasonic's cells into the many kinds of solar glass tile roofs that Tesla will be manufacturing," a spokesperson from both Tesla and Panasonic said in a statement.
Panasonic will handle the capital in Buffalo while Tesla committed to a long-term purchase from the company.