Image credit: nikkei.com

Base on the latest 8-K from Tesla Inc. the California electric automaker, the company and Panasonic on June 10 entered 2020 pricing agreement relating to manufacture and supply by Panasonic of lithium ion battery cells at Gigafactory in Nevada. Both companies entered into amendment, restatement of terms and conditions entered into between companies on Oct 1st 2014; amendment, among other things, modifies term to expire 10 years after Panasonic achieves certain manufacturing milestones.

"On June 10, 2020, Tesla, Inc. and Tesla Motors Netherlands B.V. (collectively, “Tesla”) and Panasonic Corporation and Panasonic Corporation of North America (collectively, “Panasonic”) entered into an amendment and restatement (the “2020 GTC”), of the General Terms and Conditions entered into between Tesla and Panasonic on October 1, 2014, as amended, which governs certain agreements for Panasonic to manufacture lithium-ion battery cells for Tesla at Gigafactory Nevada. The 2020 GTC, among other things, modifies the term to expire 10 years after Panasonic achieves certain manufacturing milestones. On June 10, 2020, Tesla and Panasonic also entered into the 2020 Pricing Agreement (Gigafactory 2170 Cells) (the “Agreement”), effective as of April 1, 2020 until March 31, 2023, relating to the manufacture and supply by Panasonic of lithium-ion battery cells at Gigafactory Nevada. The Agreement is subject to the 2020 GTC and, among other things, sets forth the specific terms between the parties with respect to pricing, planned investments and new technology, as well as production capacity commitments by Panasonic and purchase volume commitments by Tesla over the first two years of the Agreement. Tesla and Panasonic have also entered into other previously disclosed agreements relating to the production and supply of lithium-ion battery cells, and Panasonic invested $30.0 million in a private placement of Tesla common stock in November 2010."

Click here for the Tesla 8-K