Tesla, Panasonic Reach Battery Production Equipment Agreement

Tesla, Panasonic Reach Battery Production Equipment Agreement

Panasonic will supply battery-production equipment for Tesla’s upcoming “Gigafactory” battery production facility.

An official announcement from the California-based electric carmaker and the Japanese electronics giant is still pending, but Reuters reports that the two reached an agreement citing unnamed sources. Confirmation of the agreement is expected before the end of July.

Panasonic is seeking to be the only battery producer at the facility, but has yet to officially secure that position. Tesla is seeking $3 billion in outside investment on top of the $2 billion that it is pouring into the project. Reuters reports that this deal will involve Panasonic paying Tesla somewhere between $196 million and $295 million.

Panasonic will invest over $1 billion in total to the facility for which Tesla has yet to announce a final location. CEO Elon Musk said earlier this year that he plans to break ground on as many as three locations before announcing a final plan.

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[Source: Reuters via TTAC]