The solar cells and modules manufactured at the plant will be used to produce solar panels in the non-solar roof products.
Tesla also noted that it will incorporate Panasonic’s solar cells into many kinds of the solar glass tile roofs that it will manufacture.
The electric carmaker said that all of the solar products will work with its energy storage products including Powerwall and Powerpack.
By 2019, Tesla expects that the collaboration would result in the production of 1GW solar PV modules.
While Panasonic will cover capital expenses to produce the solar cells as part of the agreement, Tesla is making a long-term purchase commitment from Panasonic.
The collaboration is expected to expand the production capacity of Tesla's facility in the US and create thousands of new jobs in the coming years.
Tesla has reaffirmed its SolarCity’s commitment to add over 1,400 jobs in Buffalo—including over 500 manufacturing jobs.
Panasonic will also work with Tesla in developing the next-generation PV solar module technology at SolarCity’s Fremont, California facility.
The collaboration of Tesla and Panasonic on solar module production was announced in October this year, only few days after Tesla proposed to acquire SolarCity.
Tesla and Panasonic have been collaborating since 2011. Panasonic has been supplying Tesla with automotive grade lithium-ion batteries for quite some time now.
The lithium battery supply agreement was once again revised in 2013, according to which, the Japanese major will supply about 2 billion cells to Tesla over a four year period.
Image: Tesla and Panasonic to start solar module production in New York, US. Photo: Courtesy of Tesla Motors.
