Tesla In Mexico
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The Largest Electric Vehicle Manufacturing Facility In The World Will Be The New Tesla Factory In Mexico

The Largest Electric Vehicle Manufacturing Facility In The World Will Be The New Tesla Factory In Mexico

March 20, 2023 / By Zunair Tahir / Automotive News

Arrival Of Tesla In México

A new factory will be constructed in Santa Catarina, in the Mexican state of Nuevo León’s northern region, according to Tesla creator Elon Musk.

Investment Of $5 billion

President Andrés Manuel López Obrador of Mexico and state governor Samuel Garca hailed the news and reaffirmed that water usage, a contentious aspect of the project, won’t be a problem thanks to a $5 billion investment.

One Of The World’s Biggest Factories

The Tesla facility in Mexico will be the biggest electric car manufacturing in the world, according to Martha Delgado, Undersecretary for the Ministry of Foreign Affairs (pictured with Musk).

Greater Than Twice As Large As Mexico City’s International Airport

According to Santa Catarina’s mayor, Jesus Nava, the property is nearly 4,200 acres in area, more than double the size of Mexico City’s international airport, and Tesla is buying it from private landowners.

An Ideal Location

The technology tycoon stated that the site of his new plant will provide a strategic link because it borders the United States and is three hours away from Texas, where another Tesla plant is situated, in an effort to grow its operations.

Tesla Production Outside Of The US

The Mexican factory will be a part of the brand’s growth, so it will be a complement to the rest of its factories, which are situated in the United States, China, and Europe, according to comments made by Musk himself.

Newest Models Of Vehicles (And Cheaper)

It was announced during Investor Day 2023 that the new Tesla plant will be in charge of manufacturing Tesla’s upcoming models. One of them is the purportedly innovative ‘economic’ strategy to contend for a more competitive market.

“Welcome Tesla”

“The world’s wealthiest man chose Nuevo León, Mexico, for both his new gigafactory and his cutting-edge car. The outlook is positive “the Nuevo León mayor tweeted.

Tesla Mexican Plant Controversies

The first debates over the factory emerged at the same time as the first reports, as it was the Mexican president who suggested that the plant be located in another state due to Nuevo León’s shortage of water.

Will Elon Find A Solution To The Issue?

Musk did, however, reportedly make several recommendations to the Mexican administration to address the water issue. The Mexican president then formally revealed the factory’s building after 14 months of talks.

Addressing The Issue Of Water Shortage

Obrador stated, “The plant will be built in Nuevo León, with a number of promises to address the issue of water shortage.

A Strategy To Protect The Water

Although specifics regarding these tactics were withheld, local media reported that a water preservation plan sticks out among the conditions agreed upon for the building of said plant.

Another Potential Undertaking

However, given the significant lithium deposits the nation possesses and that Obrador pledged to nationalize in order to prevent outsiders from exploitation, the potential of marketing lithium as a raw material for the production of batteries for said electric vehicles was also brought up.

Mexico’s Natural Resources

During his recent visit to the state of Sonora, Obrador declared that lithium “belongs to the country” and that he would nationalise such natural resources “so that they cannot be utilised by outsiders, neither by Russia, nor by China, nor by the United States”.

Reached A Consensus

Obrador said, “Lithium belongs to the Mexicans, but if the raw material is purchased, if the battery plants are placed in Sonora, if you offer Sonorans employment, to the Mexicans, an agreement is made” during his morning program following the confirmation of the new Tesla factory.

The Process Of Making Batteries

The production of batteries for electric vehicles is currently being implemented, but how exactly is unclear. It is an expenditure that will likely be made in the future as natural resources are traded for capital and technology.

Leading Producer Of Automobiles Is Mexico

According to José Zozaya, head of the Mexican Association of the Automotive Industry, “Mexico confirms its leading position in the production and sale of cars to the globe” with the entry of Tesla.

6,000–10,000 Additional Jobs

As of right now, neither Tesla nor Elon Musk have provided numbers indicating how many employment the largest electric vehicle factory will create. Government officials promised, however, that it is anticipated that 6,000 to 10,000 employment will be created.

Possibilities For Santa Catarina

An economic effect that would originally and specifically impact Santa Catarina, which as of the National Institute of Statistics and Geography’s 2020 census has a population of over 300,000, (INEGI).

Ford, General Motors, BMW

In addition to Tesla, other industry juggernauts like BMW, General Motors, or Ford have opened eight plants in Mexico to manufacture electric cars.

Prior To Colombia And Brazil

El Pas reports that Mexico has surpassed Brazil and Colombia as the region’s champion in the marketing of electric vehicles, with the United States serving as its primary export market.


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