Tesla plans to build batteries at its new plant in Texas.

Tesla’s new plant in Austin, Texas, will not only produce electric pickups, but also plans to produce batteries there as part of an ambitious strategy to further consolidate its supply chain. “The plant plans to operate a battery manufacturing division to produce battery packs mounted on vehicles,” Tesla said in a 188-page air quality permit application to the Texas Environmental Quality Commission. “

Tesla plans to build batteries at its new plant in Texas.

Tesla CEO Musk announced at the company’s July earnings meeting that he had chosen Austin as the location of the new plant. This will be Tesla’s second car assembly plant in the U.S., which will produce Model Y cross-border vehicles for customers on the U.S. East Coast, in addition to the Cyberruck, Semi-Trailer and Roadster sports cars.

At Battery Day at the end of September, Musk said Tesla would continue to source batteries from existing suppliers such as Panasonic, LG Chemical and Ningde, but had also begun producing its own batteries on a pilot production line in Fremont, California. Musk said the line will eventually produce only about 10 gigawatt-hours of batteries a year, while a large Tesla battery plant will have a capacity of nearly 200 gigawatt-hours.