The new companies have partnered on several other major projects in recent years.
The new factory in Buffalo is under development by SolarCity Corp., a San Mateo, California-based solar panel company owned by Tesla.
The PV cells and modules it produces will be used in solar panels for non-solar roof products and solar glass tile roofs that Tesla plans to begin making, the companies said in a joint announcement Tuesday.
Production is scheduled to begin in mid-2017.They said they expect to be producing 1 GW in modules by 2019.
Under the terms of the deal, Panasonic will cover capital costs for the manufacturing of the photovoltaic cells and modules, while Tesla, which is based in Palo Alto, California, has entered into a long-term purchase commitment for the factory's output.
The plan is part of the solar partnership that the two companies first announced in October
Tesla said it will create 1,400 jobs in Buffalo, 500 in manufacturing and plans further expansion in Buffalo.
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