Tesla, Panasonic Reach Battery Production Equipment Agreement

Luke Vandezande
by Luke Vandezande

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]

Luke Vandezande
Luke Vandezande

Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.

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