Panasonic, Tesla consider solar tie-up

The pair have already teamed up on the world's biggest the lithium-ion battery factory in Nevada, but said they plan to expand their collaboration.

"We agreed to start talks on a tie-up in production of solar batteries in a factory in Buffalo, New York, run by a Tesla subsidiary," she said.

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The Japanese company will supply technology used in solar cells and modules for products that are to be designed by Tesla.

The US firm said that the partnership will help "accelerate production of high-efficiency, extremely reliable solar cells and modules at the best cost".

The deal requires shareholders' approval of Tesla's planned acquisition of San Mateo, California-based solar-panel company SolarCity Corp.

The two companies have also collaborated on electric vehicles as well as the Nevada battery site.

Tesla is running the $5bn "gigafactory" while Panasonic will make battery cells destined for the plant and is investing in equipment and machinery.