Japanese
electronics giant Panasonic and US electric vehicle maker Tesla Motors (Xetra:
A1CX3T - news) said Thursday they will jointly build and operate a huge lithium
ion battery plant known as the Gigafactory.
Under the
deal, Tesla will run the operations at the proposed US-based plant, while its
Japanese partner will make battery cells destined for the plant and invest in
equipment and machinery, according to a joint statement.
The
companies did not disclose financial details, a location or other terms of the
agreement.
Japanese
media previously reported that Panasonic would invest as much as 30 billion yen
($290 million) in the multi-billion-dollar plant.
The pair
said the large-scale plant should drive down the cost of batteries and
eventually help popularise electric vehicles.
The
Gigafactory will produce battery cells, modules and packs for Tesla's electric
vehicles.
Some 6,500
people are expected to work at the facility.
"The
Gigafactory is being created to enable a continuous reduction in the cost of
long range battery packs in parallel with manufacturing at the volumes required
to enable Tesla to meet its goal of advancing mass market electric
vehicles," the joint statement said.
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