Panasonic, Tesla Enter Into Production Equipment Agreement
It’s almost official: Panasonic and Tesla will enter into a basic agreement where the former will supply the latter with battery-production machines for the automaker’s up-and-coming Gigafactory.
Reuters reports the deal — which will be officially announced by the end of this month — comes with a price tag of ¥20 billion – ¥30 billion ($196.4 million – $294.7 million USD) paid to Tesla by Panasonic.
The battery maker, which wants to be the sole entity under the roof of the as-yet-to-be-located factory, will invest $1 billion overall into the ambitious project, estimated to cost $5 billion in total investment.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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This is a confusing post. Panasonic will provide Tesla with equipment *and* pay them? So, Tesla isn't buying the equipment, or is the equipment part of the value of Panasonic's investment? And how does the payment fit into Panasonic's $1B share of the gigafactory's investment? Who is the "battery maker" in the article? (Tesla, because they are going into the battery-making business, or Panasonic, because they make equipment to make batteries?) Is Tesla hiring Panasonic to make batteries in their gigafactory, or are they just a supplier?