Tesla Panasonic Gigafactory Agreement

Tesla Panasonic Gigafactory Agreement

In the brief announcement, several themes of the agreement are mentioned (without giving details): the companies did not give financial details, location or other terms of the agreement. The agreement signed last week is retroactive from April 1, 2020, as Tesla wrote in a mandatory notification to the SEC. The contract defines, among other things, the extent to which Tesla will purchase batteries from Panasonic in the first two years of the contract. However, the details are not known. Tesla and Panasonic also entered into other previously disclosed agreements for the production and supply of lithium-ion batteries, and Panasonic invested $30.0 million in a private placement of Tesla common shares in November 2010. On June 10, 2020, Tesla, Inc. and Tesla Motors Netherlands B.V. (together “Tesla”) and Panasonic Corporation and Panasonic Corporation of North America (together “Panasonic”) amended and repositioned (the “2020 GTC”) terms and conditions between Tesla and Panasonic on October 1, 2014, modified, the specific agreements for Panasonic for the production of lithium-ion batteries for Tesla near The proximity of the CGV 2020 changes, among other things, the lifespan that expires ten years after the arrival of some manufacturing bricks by Panasonic. Tesla Motors press@teslamotors.com Tel: 1650-833 8456 Under the agreement, Tesla will prepare, supply and manage land, buildings and utilities. Panasonic will manufacture and supply cylindrical lithium-ion cells and invest in associated devices, machines and other manufacturing tools based on their mutual consent. A network of supplier partners is planned to manufacture the necessary precursor materials. Tesla will take cells and other components to assemble modules and battery packs. To meet the expected demand for cells, Tesla will continue to purchase batteries produced at Panasonic`s plants in Japan.

Tesla and Panasonic will continue to discuss implementation details, including distribution, operations and investments. Of course, we don`t have the details of the deal, but if I was speculating, I guess Panasonic has agreed to increase its investments in the Nevada Gigafactory in order to increase the volume and produce new batteries developed with Tesla.