By qsolis La Cartita (@LaCartita)
10/mar/2023
Elon Musk unveiled a plan for a new Gigafactory in Mexico, which is expected to cost around $5 billion.
A planned factory in Santa Catarina, Nuevo León is expected to bring a sizable investment and job growth to the region, despite being essentially vetoed due to water shortages. Despite its proximity to Texas, its readily available infrastructure and workforce, as well as one of its companies being Tesla’s largest aluminum supplier.
Mexico’s president had threatened to veto the plant due to water shortages, but a spokesperson for the Ministry of Foreign Affairs has said Tesla will use treated water to cool its towers, employ a reverse osmosis system to treat water for painting vehicles and collect rainwater.
This is not the first time that the Mexican government has clashed over water issues – previously, permits granted by the previous government to Constellation Brands, were canceled due to water shortages. This is similar to the dispute over water at the Gigafactory in Grünheide, Brandenburg, Germany.
The Gigafactory is seen as a way for Mexico to become a hub for nearshoring by international companies who had previously manufactured in China. Mexico’s automotive industry plays a large role in the country’s economy, making it the seventh largest automobile producer in the world with US, European.