Tesla and Panasonic will make solar cells in New York

Tesla has announced alongside Panasonic, that they will start production of solar cells in a factory on American soil - in Buffalo, New York.

The two companies have settled on an agreement for Panasonic to pay the capital costs for the manufacturing, while Tesla has made a "long-term purchase commitment" to Panasonic - but no official figures have been thrown around. The production factory in question is under development by SolarCity Corp., a solar power company that Tesla owns.

The announcement said that the photovoltaic cells and modules that are used in solar panels for non-solar roof products and solar glass tile roofs that Tesla will soon be making. Production kicks off mid next year, with Tesla creating 1400 jobs in Buffalo, and 500 more jobs in manufacturing as it expands its operations in Buffalo.

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New York state is throwing in $750 million to build and get the site up and running, whilst Solar City is investing $5 billion over 10 years in New York state. This move will see 1500 jobs created for the Buffalo plant in the next 5 years, and over 2000 more jobs for people throughout New York.