Tesla, a major automaker, has said it will invest $500 million in a $1.5 billion lease deal to help Tesla Motors with its production of its Model 3 electric sedan.
The $1 billion investment is the largest single lease commitment in Teslas history.
Teslas CEO Carlos Ghosn said the deal will help Tesla accelerate its production and accelerate sales of its electric vehicles, which will also help expand the company’s business in the U.S. The automaker has a total of 1,000 employees at its Michigan facility.
Teslas Model 3 has been delayed for years due to a range of issues, including problems with its lithium ion battery, and there is no date for when it will be ready for consumers.
Tesla is expected to sell 1,200 Model 3s a week.
The deal is worth about $1,700 per vehicle.
The U.K. government will provide financing for the lease.
Tesla’s deal with Teslas was announced in January and is subject to a public auction.
The company also said it would partner with the National Grid to deliver the network’s electricity and power to its vehicles.