Japanese electronics company Panasonic and U.S. electric car maker Tesla said Tuesday they plan to begin production of solar cells at a factory in Buffalo, New York.
The two companies said they finalized an agreement calling for Tokyo-based Panasonic to pay capital costs for the manufacturing. Palo Alto, California-based Tesla made a “long-term purchase commitment” to Panasonic.
Their statement gave no financial figures.
The factory in Buffalo is under development by SolarCity Corp., a San Mateo, California-based solar panel company owned by Tesla. The photovoltaic cells and modules will be used in solar panels for non-solar roof products and solar glass tile roofs that Tesla plans to begin making, the announcement said.
Production is due to begin in mid-2017. Tesla said it will create 1,400 jobs in Buffalo, 500 in manufacturing and plans further expansion in Buffalo.
Panasonic also is to work with Tesla on next-generation technology, the companies said.
New York state has committed $750 million to build and outfit the plant at Buffalo’s RiverBend site, the centerpiece of Democratic Gov. Andrew Cuomo’s “Buffalo Billion” program to revitalize the upstate region’s largest city.