Tesla has secured a new location in Fremont, California, to expand its 4680 battery cell production, according to a new report.

When Tesla unveiled its own new cell format, the 4680 battery cell, it ventured into manufacturing its own battery cells for the first time.

Prior to that point, Tesla had always bought battery cells from suppliers to put in its electric vehicles.

The automaker established production at a facility in Fremont near its automotive factory and it is expanding into larger-scale production at Gigafactory Texas in Austin.

Now San Francisco Business Times reports that Tesla secured a new building in Fremont:

The Austin-based electric vehicle manufacturer (NASDAQ: TSLA) signed a lease for 48401 Fremont Blvd., two sources told the Business Times. San Francisco industrial real estate investment trust Prologis (NYSE: PLD) owns the 210,000-square-foot advanced manufacturing facility.

The new building is located right across the street from Tesla’s pilot production plant for 4680 cells in Fremont.

The Business Times reports that Tesla plans to use the location to expand its 4680 cell production:

The facility will support production of Tesla’s 4680 battery cell technology, according to one of the sources, who had direct knowledge of the deal but was not authorized to discuss it publicly. The 4680 cell, a more efficient and longer-lasting battery technology, is expected to be a crucial part of the company’s rollout of its Cybertruck vehicle later this year.

As we previously stated, while Tesla called its 4680 battery facility in Fremont a “pilot factory”, it had a planned production capacity of 10 GWh, which is higher than many normal battery factories.