Mexico's president says Musk will build Tesla EV plant in northern Mexico

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Tesla will build a caller works successful Monterrey, Mexico, nan nation’s president announced, ending weeks of speculation complete wherever nan shaper of electrical cars would take to run successful nan country.

President Andrés Manuel López Obrador said Tuesday that nan institution will build nan works pinch a bid of commitments to reside nan problem of h2o scarcity. AMLO, arsenic nan president is known, had a telephone pinch Tesla’s Chief Executive Officer Elon Musk connected Monday.

“He was very responsive, knowing our concerns and accepting our proposals,” AMLO said. “I want to convey Mr. Elon Musk for being very respectful, attentive and knowing of nan value of addressing nan problem of h2o scarcity.”

The company’s commitments see utilizing recycled h2o successful nan full manufacturing process of electrical cars, moreover for car paint, nan Mexican leader said, adding that much specifications will beryllium announced Wednesday, erstwhile nan automaker has an investor day. Additional commitments will besides beryllium announced adjacent week, he said.

The leader of nan Latin American federation had antecedently raised concerns astir nan deficiency of h2o for Tesla to build successful bluish Mexico. On Friday, he reinforced nan connection by saying nan institution wouldn’t person permits if location wasn’t capable h2o successful that region.

Last June, authorities were forced to trim h2o entree successful Nuevo Leon, wherever Monterrey is located, to a maximum of 7 hours, arsenic dams were astatine consequence of emptying entirely. The Mexican authorities moreover asked industries and farmers successful Monterrey to connection portion of their h2o to nan organization amid weeks of acute shortage while AMLO asked businesses successful nan area to trim h2o usage.

Tesla ran up against concerns astir h2o scarcity while readying 1 of nan 2 caller car factories nan institution opened past year. While Musk laughed disconnected a mobility astir nan rumor successful August 2021, it contributed to delays that kept nan works from starting accumulation until 7 months later.

The mill would beryllium Tesla’s first southbound of nan U.S. separator and portion of Musk’s plans to grow world manufacturing, adding to nan caller plants successful Austin, Texas, and Berlin. AMLO said that Mexico would beryllium incapable to supply subsidies for batteries aliases semiconductors comparable to nan incentives being offered successful nan United States. The uncertainty complete nan location successful Mexico touched disconnected a trading conflict betwixt different states, whose leaders sought to beforehand their entreaty for businesses.

The electrical car manufacture has grown successful Mexico chiefly arsenic overseas request for nan vehicles continues, pinch BMW announcing a caller finance of $866 cardinal successful nan authorities of San Luis Potosi. Other automakers, specified arsenic General Motors, person besides announced that they will are expanding their electrical car accumulation successful nan country.