Japanese electronics giant Panasonic has reached an agreement with Tesla Motors to provide machinery for the car maker’s planned battery plant.
According to the Nikkei, the initial investment is said to be between 20- to 30 billion yen, or roughly between $200- to $300 million, although the exact details will be made official before the end of July.
Panasonic’s eventual $1 billion total share being about one-fifth of Tesla’s total expenditures on the Gigafactory.
The Gigafactory has been much-reported, with Tesla seemingly not wanting to rush into a decision about the potential location, which — depending on the source — is being picked from between three or five locations in the U.S.
Back in May, Panasonic had made its desire to be the only battery cell maker in the plant, which is expected by 2020 to produce more lithium-ion battery cells in one place than every other global factory combined.
Panasonic has been one of Tesla’s longest partners thanks to an agreement in early 2010 to provide some of the most energy-dense lithium-ion batteries available, which was expanded later that year with a $30 million investment to research cells specifically designed for vehicle use.