Tesla to Open Canada Battery Gear Factory in Markham, Ontario: Mayor

A wheel of a prototype of the Tesla Model 3 on display in front of the factory during a media tour of the Tesla Gigafactory, which will produce batteries for the electric carmaker in Sparks, Nev., on July 26, 2016. James Glover II/Reuters

SAN FRANCISCO—Tesla Inc. opened a factory to produce battery manufacturing equipment in the Canadian city of Markham, Ontario, the city said on Friday, as the electric carmaker ramps up the production of cheaper, higher-range 4680 battery cells.

In 2019, the U.S. electric carmaker acquired Canada-based Hibar, which manufactures pumps used in fast-speed battery assembly that Tesla is introducing for its new 4680 cells.