Tesla Motors has signed an agreement to acquire Maxwell Technologies Inc., an energy storage developer. The deal will expand Tesla's position in the automotive, industrial and home energy markets.

The $218 million deal will give Tesla access to an additional source to develop and manufacture its Powerwall energy storage systems as well as batteries for its electric vehicles. Maxwell also develops components for batteries, which could be used for future energy storage iterations. Two years ago, Tesla began mass production of its energy storage batteries for use in its vehicles and Powerwall at its Gigafactory in Reno, Nevada.

Following regulatory approval, the companies expect to finalize the acquisition in the second quarter of this year. Maxwell will become a wholly owned subsidiary of Tesla following a merger with another Tesla subsidiary.

Maxwell’s energy storage systems are currently used in industrial grids and transportation vehicles.