Panasonic’s letter to U.S. officials last October accompanied a request to produce the cells in a foreign trade zone within the Buffalo plant that would allow Panasonic to import certain parts tariff-free because the finished cells would be sold overseas, not domestically.
That request was granted in April.
The zones help companies avoid, delay or pay reduced tariffs on imported parts in cases where it helps U.S. manufacturers compete with overseas rivals.
“It is fully anticipated that the majority of the cells to be produced” in the FTZ “will be exported,” the company said in its application.
Panasonic’s Canal said foreign solar panel manufacturers want the Buffalo plant’s cells because solar panels assembled abroad with American-made cells can be shipped to the United States tariff-free, according to U.S. trade rules implemented last fall.
Panasonic’s Buffalo operation is one of few U.S.-based solar cell producers because it is traditionally far cheaper to make the components in other countries, putting it in a unique position to serve the foreign demand.
Canal would not disclose the company’s non-Tesla solar cell customers or say what percentage of its Buffalo cell output was being shipped outside the country, saying that information was “proprietary and competitive.”
A Panasonic source said much of the exported material was going to a large Asian buyer.