Tesla is taking up a new location in Fremont to expand production of 4,680 battery cells, the report says

Tesla has secured a new location in Fremont, California, to expand its 4,680 battery cell production, according to a new report.

When Tesla unveiled their own new cell format, the 4680 battery cell, they ventured into producing their own battery cells for the first time.

Before that time, Tesla had always bought battery cells from suppliers to put into electric vehicles.

The automaker established production at a facility in Fremont near its auto plant, and it is expanding to larger production at the Gigafactory Texas in Austin.

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

The Austin-based electric car maker (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 across the street from Tesla’s 4,680-cell pilot production facility in Fremont.

The Business Times reports that Tesla plans to use the site 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 long-lasting battery technology, is expected to be a crucial part of the company’s rollout of the Cybertruck vehicle later this year.

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