Panasonic invests more than $256 million in Tesla's SolarCity

After announcing the plan to build a $5 billion lithium-ion Giga factory east of Reno, Nevada, to produce batteries for both electric cars and energy storage products, the duo - Panasonic and Tesla - are back with the second announcement.

Expanding the partnership of the two companies, Japan-based Panasonic Corp will invest more than $256 million in a New York production facility of Elon Musk's Tesla's Motors - SolarCity - to make photovoltaic (PV) cells and modules.

As part of the deal, the US electric car maker is making a long-term purchase commitment from Panasonic, besides providing factory buildings and infrastructure.Production will begin with 2017 summer, with the factory’s output capacity expanding to 1 gigawatt by 2019.

The partnership will also create job opportunities for 1,400 people to the region which will include 500 manufacturing positions.

Tesla revealed plans to work with Panasonic to make solar cells and modules in October and soon acquired solar installer SolarCity for $2.6 billion.

Musk also plans to make a new solar roof made of glass tiles in late October, “When production of the solar roof begins, Tesla will also incorporate Panasonic’s cells into the many kinds of solar glass tile roofs that Tesla will be manufacturing,” Tesla said in a blog post. Tesla is also working on a semi truck and a transit bus.