According to Reuters, the Mexican Nuevo Leon state government announced on Tuesday that electric car manufacturer Tesla has obtained a land use permit issued by the country’s federal Ministry of Environment to build a new plant in the northern border state of Nuevo Leon. Build a “super factory”.
The state government said the area of land earmarked for the plant is about 261 hectares. Tesla announced plans to build a new factory in Mexico in March but did not provide a specific construction timeline.
The Nuevo Leon government estimates that the project will cost more than $5 billion (Note: currently about 35.9 billion RMB), but Tesla has not announced its specific investment amount.
Tesla CEO Elon Musk said in October that he was cautious about plans to build a factory in Mexico given the uncertain economic situation. His remarks came after the Nuevo Leon state government said it would invest more than $130 million in infrastructure to support the factory’s construction. Reuters previously reported that Nuevo Leon state had agreed to build electrical substations, natural gas pipelines, rail spurs, roads and water and wastewater treatment facilities.
Nuevo Leon state governor Samuel Garcia said in October that the “gigafactory” is expected to bring in about $15 billion in revenue from Tesla and its suppliers over the next two years.
The Mexican government sees the Tesla project as an example of the rising trend of “near-shoring,” a growing number of companies looking to move production from Asia closer to the United States.
