Comments from a BYD Executive Vice President have revealed that the China-based company will soon be supplying batteries to Tesla for use in their Model Y crossover.

Tesla China has been ramping up production activity lately, and there are plans to expand production even further. There are reportedly even preparations being made to build a new Tesla Gigafactory near Shanghai. Estimates are the new plant would double Tesla’s production output, making about 1 million cars per year.

That level of output will require Tesla to secure additional souring for batteries. Presently Tesla cars are powered by batteries from CATL and LG Energy Solution.

According to sources for automotive News outlet Auto Time, Tesla will begin using BYD’s batteries as early as next year in their Model Y.

Rumors of a Tesla-BYD alliance have been around for a year now, but had yet to be confirmed. However recently BYD executive vice president Lian Yubo, in an interview with state-owned media agency CGTN, mentioned there was a deal with Tesla.

In the interview, Yubo said, “Tesla is a very successful company no matter what. BYD respects Tesla, and we admire Tesla. We are good friends with Elon Musk, and we will soon supply him with batteries. We are friends.”