Panasonic, Tesla Enter Into Production Equipment Agreement

Cameron Aubernon
by Cameron Aubernon

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.

Cameron Aubernon
Cameron Aubernon

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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  • Redav Redav on Jul 29, 2014

    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?

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    • Luke42 Luke42 on Jul 30, 2014

      Yeah, I was left wondering if the Gigafactory is a joint venture where both Tesla and Panasonic own stock in "Gigafactory, Inc"? Or maybe Panasonic is swapping factory machinery and support for Tesla stock? Some statements in the article raise the question, but leaves the observant reader hanging. Perhaps another article on the corporate arcana behind the deal is in order? Or maybe pch101 will explain the whole thing in one terse-but-informative paragraph. :-)