Tesla is rumored to have a deal with Steel Dynamics to supply the steel for the Cybertruck electric pickup truck from a new $1.7 billion factory in Texas – not too far from Tesla’s own Texas factory.

When Tesla unveiled the Cybertruck last year, one of the most interesting features was the fact the vehicle isn’t going to be built using a traditional automotive body system but with an exoskeleton.

The automaker wrote about the exoskeleton:

“Cybertruck is built with an exterior shell made for ultimate durability and passenger protection. Starting with a nearly impenetrable exoskeleton, every component is designed for superior strength and endurance, from Ultra-Hard 30X Cold-Rolled stainless-steel structural skin to Tesla armor glass.”

Tesla said that they were using the best steel they could make:

“If there was something better, we’d use it. Help eliminate dents, damage and long-term corrosion with a smooth monochrome exoskeleton that puts the shell on the outside of the car and provides you and your passengers maximum protection.”

At the launch, CEO Elon Musk said that it is using the same alloy as SpaceX’s next interplanetary spaceship:

“We’re going to be using the same alloy in the Starship rocket.”

Now we’ve learned that Tesla could be getting the steel from Steel Dynamics, which is building a giant new factory in Texas.

San Patricio County Judge David Krebs, who is involved in the approval of the $1.7 billion project, told local media 3News:

“The 1.7-billion-dollar steel dynamics plant under construction in Sinton is supposed to be up and running by the Fall of 2021. Not only is it going to provide hundreds of good paying jobs but it’s also going to supply the steel used in making Tesla’s Cybertruck.”

Of course, Tesla is currently building its own factory in Austin Texas, just a few hours away from the new steel plant.

Here’s the news report in question:

However, neither Tesla nor Steel Dynamics have confirmed a supply agreement for the Cybertruck.

Tesla plans on bringing the electric pickup truck to production in late 2021 and it has over 650,000 reservations for the electric vehicle, according to the latest tally.

Recently, Tesla CEO Elon Musk warned that there will be challenges to bring the Cybertruck to production on time since it requires new manufacturing methods to make that steel exoskeleton.

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