General Motors (GM) - Get General Motors Company Report has partnered with First Solar (FSLR) - Get First Solar, Inc. Report to supply solar energy to three of its factories in the Midwest, the automaker said on Wednesday.
GM stock at last check was up 2.5% to $29.47 while First Solar rose 2.3% to $67.28.
The Detroit automaker signed a 180-megawatt power-purchase agreement with First Solar, the largest manufacturer of solar panels and systems in the U.S.
The solar energy for this project will come from the Arkansas facility of First Solar, which is based in Tempe, Ariz. GM will have the option to store this renewable energy for future use, a first for the company.
"As GM continues its transition to an all-electric, zero-emissions future, it is imperative that we also invest in a cleaner grid that can support everything – from our factories to our vehicles,” GM Chief Sustainability Officer Dane Parker said in a statement.
"Investments like these have increased access to renewable power, and with this deal we are exploring the next frontier of renewable energy, which integrate the principles of circularity and energy storage, among others," Parker added.
“GM’s investment supports the use of solar technology, innovated and developed by First Solar in the United States, to power factories that form the core of the Midwest’s industrial resurgence,” First Solar Chief Commercial Officer Georges Antoun said in a statement.
On Monday, GM said that it would invest $71 million in two manufacturing facilities in Ohio, with work expected to begin immediately.
GM also said it would build a new $2.3 billion battery cell manufacturing plant in Lordstown, Ohio, through a joint venture with LG Chem.
The plant will play a crucial role in the company’s plan to eventually go all-electric.