Tesla and Panasonic ink deal for “Gigafactory”

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Tesla Motors and Panasonic Electronics have reached an agreement to build a battery plant in the U.S. According to Tesla the factory will require an investment of up to $5 billion and employ 6,500 people. The states named as finalists to try and acquire this large project include Texas, New Mexico, Arizona, Nevada, and California.

The goal of the partnership is to create lower cost advanced batteries. The battery is being designed for a mass market car, the model 3, which is due out in 2020 and will be priced at $35,000. Tesla aims to produce enough batteries to equip 500,000 vehicles a year. In comparison, Tesla produced only 20,000 vehicles in the U.S. last year.

Earlier today, Panasonic posted a $369 million net profit for the 2nd quarter of 2014, down 65% from a year ago. Panasonic looks at it’s reported 20% investment in the plant as a chance to expand into the growing market of electric cars.

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