Frank Scarpitti, the mayor of Markham, Ontario, just north of Toronto, announced this week that Tesla plans to open a parts plant in the city.

“I am delighted to share that Tesla Canada is joining our already robust automotive and technology ecosystem by locating a manufacturing facility in the City of Markham,” wrote Mayor Scarpitti in a statement that he tweeted out. “The facility will be the first branded Tesla Canada manufacturing facility in Canada and will produce state-of-the-art manufacturing equipment to be used at the Gigafactories located around the world in the production of batteries.”

The mayor provided no further details, but the automaker did recently buy Canada’s Hibar, a company that was engaged in the manufacture of pumps used in fast-speed battery assemblies that Tesla will need for its new 4680 cells, per Reuters.

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Tesla did not comment on the mayor’s tweet, but its senior vice president, Andrew Baglino said at the company’s Battery Day event last year that “vertical integration” with Hibar and others would allow it to build batteries faster and scale up production of the cells.

Tesla currently builds 4680 cells at its pilot factory in California and intends to build them at its upcoming factories in Texas and Berlin.

The batteries are seen as essential to Tesla’s plan to build a small, affordable vehicle priced at around $25,000. Five times larger than the 1865 and 2170 cells that Panasonic currently provides Tesla, fewer will be needed to power EVs, which means fewer parts for battery packs.

The cells are, however, prone to overheating, necessitating an improved cooling system. CEO Elon Musk has said, though, that the batteries are pivotal in the company’s plan to sell 20 million EVs by 2030.