JupyterHub Spawner on a Cluster

Feels like I’m missing something obvious, but with the default spawner, where does Jupyterhub get the resources when it is installed in a cluster running slurm?

I think that it uses the current node that Jupyterhub is installed on (in this case, the login node) and I should be using batchspawner instead to have it instantiate the notebooks as jobs on other nodes. Is this correct?