Tesla and Panasonic have entered into a non-binding letter of intent. This loose agreement will mean collaboration between the two companies to manufacture photovoltaic cells and modules in New York if, and only if, Tesla’s acquisition of SolarCity goes through. The cells and modules will be used in a solar energy system that will work seamlessly with Tesla’s Powerwall and Powerpack.

The aim is to provide Tesla’s customers with integrated sustainable energy solutions, with a view to feed this clean energy back into the grid. Tesla intends to provide a long-term purchase commitment for those cells from Panasonic.

The collaboration extends the established relationship between Tesla and Panasonic, which includes the production of electric vehicle and grid storage battery cells at Tesla’s Gigafactory.