Mexico gives Tesla land-use permits for gigafactories, says the state government. According to a Tuesday announcement by the state government of Nuevo Leon, the federal environment ministry of Mexico has granted land-use licenses to Tesla, an electric vehicle manufacturer, so that it may erect a “gigafactory” there.
The state administration announced on Tuesday that the facility’s chosen site covers about 261 hectares (645 acres). The automobile manufacturer announced in March that they intend to develop a new facility in Mexico but did not provide a construction date.
Even though the government of Nuevo Leon has estimated that it will cost more than $5 billion, Tesla has not yet disclosed a capital cost prediction. Elon Musk, the CEO of Tesla, stated in October that he was cautious to move “full tilt” on plans for a factory in Mexico due to the uncertain state of the economy.
Following his remarks, Nuevo Leon stated that the government will allocate more than 130 million dollars to infrastructure development to facilitate building.
According to an earlier report by Reuters, Nuevo Leon has agreed to construct a substation for electric power, a pipeline for natural gas, railroad spurs, roads, and services for water and sewage. In October, Samuel Garcia, the governor of Nuevo Leon, stated that the so-called “Gigafactory” is expected to bring in an estimated $15 billion over the next two years through Tesla and its suppliers.
As a demonstration of the “nearshoring” trend, Mexico has cited the Tesla project as evidence that the trend is gaining momentum. This is because businesses want to relocate their manufacturing away from Asia and establish facilities closer to the United States.
According to a state official who spoke with Reuters in October, the licenses from the environment ministry would make it possible for Tesla to start building on the site.
A request for comment made late on Tuesday night was not immediately met with a response from either Tesla or a spokeswoman for Nuevo Leon.
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