The lithium-ion battery company NV Energy is taking on Tesla Energy, the solar installer that made headlines this month when it announced it would be buying SolarCity.
The company said Wednesday that it had a deal in place with SolarCity that would see the two companies work together to create a new, higher-capacity, higher capacity lithium-polymer battery for the NV Energy solar network.
The deal would also allow the companies to work together on joint projects and projects in the broader solar market.
NV Energy says the partnership will create 100 megawatts of additional capacity in the NV energy grid and is expected to generate more than $2 billion in annual revenue.
“This agreement will create new jobs and will benefit all our customers and our shareholders,” NV Energy CEO Dan Ashe said in a statement.
Tesla and SolarCity are in the same category of energy companies that are getting into the battery market, but it’s not clear how the two will work together.
SolarCity says the agreement with NV Energy, which has a deal with SunEdison, will also allow it to take on more projects and create new products, such as batteries and solar panels.
It’s also possible that the two groups could work together in the energy space in some capacity.
“SolarCity and NV Energy will work closely to collaborate on battery development and development of solar and storage solutions for the next 20 years,” said Mark Wood, SolarCity’s chief technology officer, in a blog post.
“Together, we will be building a global, energy-efficient future.”
The two companies said they have no financial relationships with each other.
Tesla has been under pressure to sell its solar business to the bigger solar industry as the company has struggled to maintain its momentum after it filed for bankruptcy protection earlier this year.
Tesla is also working on an electric car with Elon Musk, which is expected in 2019.
Tesla said in October that it would sell its battery business to SolarCity for $3.5 billion.
The company also recently launched its electric car battery business, called Powerwall, and Solar City announced that it was acquiring SolarCity last week.