Tesla Wants to Merge Panasonic with SolarCity Project

By | Oct 18, 2016 10:14 AM EDT
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A sign is posted at a Tesla showroom on November 5, 2013 in Palo Alto, California. Tesla will report third quarter earnings today after the closing bell. (Photo : Getty Images)

Tesla is hoping that its plan to merge its SolarCity project with Panasonic, its major battery partner, will win shareholder approval next month.

Tesla chief executive officer Elon Musk has particularly pushed this acquisition plan as he sees that the company can reap greater benefit out of it once it is sealed.

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Tesla announced via its official blog its interest to work with Japanese tech company Panasonic to make photovoltaic cells and modules. This new project is proposed to take place in Buffalo, New York, the same site where Tesla is planning to build SolarCity, the largest solar panel factory in North America.

The merger is expected to be tackled by Tesla's board on Nov. 17. If the planned merger is approved, Panasonic will start manufacturing battery cells and modules in Buffalo, New York by mid-2017.

Tesla said the devices manufactured in SolarCity will be used for the company's solar energy system, which will charge its Powerwall and Powerpack stationary electricity storage units.

Forbes reported that Tesla chief technical officer and co-founder JB Staubel said via a statement that they are "excited to expand our partnership with Panasonic as we move towards a combined Tesla and SolarCity."

"By working together on solar, we will be able to accelerate production on high-efficiency, extremely reliable solar cells and modules at the best cost," the company executive added.

Over the years, Panasonic have become Tesla's major industrial partner. The Japanese company is responsible for supplying Tesla with lithium-ion cells, which the former uses for its Model S and Model X electric vehicles.

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