Tesla, Panasonic to Make Solar Cells in Buffalo

Tesla Motors Inc. and Panasonic Corp. this week signed a letter of intent to make photovoltaic solar cells and modules at a SolarCity Corp. plant in Buffalo, N.Y.

The non-binding agreement is contingent on Tesla shareholders approving the company’s controversial acquisition of SolarCity, which is 22% owned by Tesla CEO Elon Musk. A vote is scheduled for Nov. 17. Tesla and SolarCity each have lost more than $1 billion over the last two years.

The 1.2-million-sq-ft Buffalo facility has the capacity to produce 10,000 solar panels per day. Production there is due to start next year.

Panasonic, which has more experience producing solar cells than SolarCity, would operate the plant and supply panels to Tesla for use with the company’s Powerwall and Powerpack stationary power storage products. Consumers also could use the energy generated by the solar panels to recharge electric vehicles.

Panasonic is a major investor in Tesla’s battery “gigafactory” in Nevada. Pilot production at that facility, which will provide lithium-ion batteries for Tesla electric vehicles, began in July. Tesla says the new agreement with Panasonic will make it the world’s first vertically integrated energy company, providing clean energy for residential, commercial and grid-scale customers.