A rendering of Tesla's planned Gigafactory. NEW YORK (CNNMoney)
The companies announced Thursday that Panasonic (PCRFF) will contribute an undisclosed sum to a proposed "Gigafactory," the location of which has yet to be announced. Panasonic will also make and supply cylindrical lithium-ion cells, and the two companies will set up a supply network for the materials used at the plant.
Tesla (TSLA) wants to build the Gigafactory, expected to cost $4 billion to $5 billion, in order to have enough lithium-ion batteries for a less-expensive electric car. Its current model, the Model S, starts at $69,000.
Related: Tesla Model S is Consumer Reports' top car pick
Tesla has said it is looking at sites in Texas, New Mexico, Arizona, Nevada and California to supply its factory in California with batteries. CEO Elon Musk said in May that the company would take the unusual step of breaking ground on multiple sites in order to minimize the risk of delays in building the factory.
Tesla is due to report second-quarter earnings later Thursday. Shares of the company, which are up more than 50% so far this year, were lower in premarkets trading Thursday following the partnership announcement.
First Published: July 31, 2014: 7:28 AM ET
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