Tesla and Panasonic have also entered into other previously announced agreements regarding the production and supply of lithium-ion batteries, and Panasonic invested $30.0 million in November 2010 in a private placement of Tesla common stock. The agreement signed last week is retroactive from April 1, 2020, as Tesla writes in a mandatory communication to the SEC. The contract defines, among other things, the volume in which Tesla will purchase panasonic batteries in the first two years of the agreement. However, the details are not known. Of course, we don`t have the details of the deal, but if I speculated, I guess Panasonic agreed to increase its investment in the Gigafactory Nevada to increase volume and produce new batteries that were developed with Tesla. In accordance with the agreement, Tesla will prepare, supply and administer the country, buildings and utilities. Panasonic will manufacture and supply cylindrical lithium-ion cells and invest in associated devices, machines and other manufacturing tools based on their mutual authorization. A network of supplier partners is planned to produce the necessary materials. Tesla will use the cells and other components to assemble modules and battery packs. To meet the expected demand for cells, Tesla will continue to purchase batteries produced at Panasonic`s factories in Japan. Tesla and Panasonic will continue to discuss the details of the implementation, including distribution, operation and investments. Building brand loyalty through sustainability – In a challenging economy, adopting sustainable practices or new technologies can be a minor priority.
But at this time, brand loyalty is becoming more and more important. As manufacturers look for ways to re-equip supply chains and procurement processes, they should take a long-term sustainability perspective and consider implementing environmental, social and corporate (ESG) governance programs focused on clean energy and reducing carbon emissions. These efforts could include on-site or off-site solar power generation, the acquisition of renewable energy through power purchase agreements (PPAs) or other mechanisms, as well as the electrification of fleets of vehicles or other equipment using fossil fuels. Consumers and employees are more supportive of manufacturers who leave to address social and environmental concerns. . . .