Tesla Motors (TSLA) has reached an agreement with Panasonic concerning plans for its gigafactory.
Tesla announced the agreement with Panasonic on Thursday. The deal will have Panasonic manufacturing and supplying the lithium-ion cells that are required for the batteries of electric cars. The battery maker will also invest in machinery and tools at the gigafactory, reports The New York Times.
Tesla’s end of the deal will have it assembling the battery packs for its electric cars. It also calls for the company to “prepare, provide and manage the land, buildings and utilities” that are a part of the upcoming gigafactory, NYT notes.
Tesla has yet to announce a location for its new gigafactory. Several states, including Texas, are vying for the plant and are working to make deals with the electric car maker. One construction site located in Nevada was rumored to be the home of the new factory, but all work at the site has stopped. Stockton, Calif., has also been listed as a top contender for the new gigafactory.
TSLA shares were up 5% as of Friday afternoon.
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