Friday, March 24, 2023

Tesla’s Gigafactory in Mexico: everything we know about the world’s largest electric car factory

Andrés Manuel López Obrador, President of Mexico, confirmed on February 28 the Tesla’s intention to build a Gigafactory in Monterrey, Nuevo León, after reaching an agreement with Elon Musk, who also revealed the news during Investor Day held at the Texas factory. With this, there will be six large factories that the electric mobility company has spread across different territories of the world, and although it is early to know all the details, both the country’s president and the CEO of Tesla have revealed many important data to the regard. Among them, that the plant will be destined to the production of a new generation vehicle.

In fact, it is not the first time that we have heard news about what will be the largest Tesla vehicle factory in the world. The rumors began in June 2022, when from electric highlighted that the tycoon confirmed in a meeting with investors his intention to build a new Gigafactory somewhere in North America. “We are looking at sites, but we are considering some options more broadly in North America, including Canada and Mexico, and also the United States,” the magnate stressed.

Later, in December of that same year, Millenniumrevealed that the Government of Nuevo León was finalizing the agreement with Elon Musk to build the factory in that state with an initial investment of between 800 million to 1000 million dollars, although it could reach 10,000 million dollars. “Tesla will arrive in Santa Catarina. In the coming weeks, the investment will be finalized, after the end of the year it will be announced,” the aforementioned outlet revealed. Interestingly, Musk went on to visit up to three different states before establishing Nuevo León as the location for Tesla’s Gigafactory in Mexico.

López Obrador and Elon Musk confirm Tesla’s Gigafactory in Mexico

The first official news about the Tesla Gigafactory in Mexico, we reiterate, came on February 28 from the president of the country himself. López Obrador affirmed that he had a video call with the CEO of Tesla to complete the agreement and, incidentally, transfer their concerns when building the factory in Nuevo Leónas the state suffers from water scarcity problems.

“He [Elon Musk] He was very receptive, understanding our concerns and accepting our proposals that will be announced starting tomorrow. This will mean a considerable investment and many jobs. I want to thank Mr. Elon Musk who was very respectful, attentive, and understood the importance of addressing the problem of water scarcity.”

Juan Manuel López Obrador, President of Mexico.

Later, during Investor Day, Tesla confirmed for its part its intention to build a Gigafactory in Mexico with an initial investment of 5,000 million dollars.

Tesla will manufacture a new generation vehicle at the Gigafactory in Mexico

Gigafactory Tesla Mexico

Tesla’s Gigafactory in Mexico, we reiterate, will be destined to the manufacture of a new generation vehicle, although there are still no more official details about it. It is likely, however, that it is one of the two mysterious vehicles that Tesla has shown during Elon Musk’s third Master Plan, since the company has only stated that they are models that will be announced in the coming years.

For his part, Reform states that Tesla’s Gigafactory in Mexico will be dedicated to the production of the model 2, which could be the company’s next economic vehicle; cheaper than even the Model 3. This model has been in Tesla’s plans on many occasions, but the company continues to delay the project.

The aforementioned portal has also revealed the dimensions of what will be the largest Tesla factory in the world. The land, specifically, has a total of 1,200 hectaresalthough only 40 hectares would be dedicated to the plant itself, and it will be located in Santa Catarina, a small municipality in Monterey.

Tesla’s Gigafactory is expected to create about 6,000 new jobs. It is also very likely that Musk will implement the new production strategy called the Unboxed Process at this plant. This consists of building all the parts of the vehicle on the same assembly line, something that will make the process more efficient. With the new strategy, Tesla will also not paint those components that are not visible to save costs in production.

It will not be the only Tesla factory in Mexico

An important detail is that Tesla’s Gigafactory in Mexico will not have a battery plant. López Obrador, however, has stressed that the electric mobility company intends to continue investing in the country for the construction of other factories. Among them, one dedicated to production for the aeronautical industry and a battery plant.

Gentleman, a state near Mexico City, could be the place chosen for a future battery factory due to its location close to the country’s main airports. The president, in fact, has highlighted Reform that “Musk offered to help with scientific and technological development for the use of lithium that Mexico has.”

Tesla will also help the state of Nuevo León with water scarcity problems

Tesla Gigafactory MexicoTesla Gigafactory Mexico

López Obrador, we reiterate, has come to convey to Elon Musk his concern about the Tesla Gigafactory in Monterrey due to the scarcity of water suffered by the state.

The agreement, therefore, also brings with it “a series of commitments” to alleviate this problem. Among them, the use of recycled water for production processes in which it is necessary to use the material, or an obligation on Tesla’s part to be involved in water treatment.

“There is a first commitment, which is the use in the entire manufacturing process of electric cars, the use of recycled water and water treatment, even for car paint, that is what the plant has to do with it” .

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