TESLA, the global leading manufacturer of electric vehicles, will be investing over $5 billion USD and creating at least 5,000 new jobs, in what will be the world’s largest Gigafactory.
During Tesla’s Investor Day 2023, CEO Elon Musk announced that after considering multiple potential locations in North America, the company has finally decided to build their world’s largest Gigafactory in Monterrey, well known as ‘Mexico’s Industrial Capital’.
Tesla has 6 production facilities, 4 of them in the United States (California, Nevada, New York, Texas), one in China (Shanghai), and one in Europe (Berlin).
“We’re excited to announce that the next Tesla Gigafactory will be in Mexico, near Monterrey. In ‘GigaMexico’ we’ll build our ‘next gen’ vehicle.”, mentioned Elon Musk.
The investment of over $5 billion USD not only represents the creation of more than 5,000 high-quality jobs, but will also arguably be the most impactful project in terms of economic development in the recent history of Mexico, as the state-of-the-art factory is expected to be one of the most technologically-advanced operations in the world.
“We are extremely happy that after a year of negotiations, we can finally confirm that Tesla has decided to establish its largest operation in the world here in the state of Nuevo Leon.” mentioned Governor Samuel Garcia.
In recent years Monterrey has become ‘Mexico’s Electromobility Hub’, largely due to the establishment of Tesla’s most recent production plant in the city of Austin, Texas, which led to the arrival of multiple tier 1 suppliers of the automaker in the northern city of Mexico. These companies have found in Monterrey important competitive advantages such as proximity to the United States, top-notch infrastructure, a mature business environment, and access to a young, skilled, and productive workforce.
“Nuevo Leon is already an Electromobility Hub and we’ll continue working hard from the government to attract more high-value projects that bring technological development. Our state is having an ‘economic boom’ that has not been seen in years, breaking records in foreign investment attraction, exports, and new jobs.”, stated Ivan Rivas, Nuevo Leon’s Secretary of Economy.
In July 2022, an exclusive lane for Tesla’s suppliers exporting components from Mexico to the United States was inaugurated at Nuevo Leon’s Colombia Port, located at the border with Texas. This lane has been very useful for all the automaker’s suppliers that established in Monterrey to supply Tesla’s factory in Austin, just 370 miles away.
“This project makes the whole community in Monterrey very happy, especially as it will bring multiple business opportunities for small, medium, and large local companies.”, mentioned Andres Ochoa-Bünsow, Chairman of the Board of Invest Monterrey, the local investment promotion agency.
The automotive industry in Monterrey has stood out nationally as one of the most dynamic, currently employing more than 100,000 people in the state, with over 200 companies, and producing more than 20% of all the auto parts in the country.
The ‘GigaMexico’ will join the six OEMs currently operating successfully in Monterrey: KIA/Hyundai (light vehicles), Polaris (off-road vehicles), Kawasaki (off-road vehicles), Daimler Mercedes Benz (buses), and International Navistar (heavy trucks).
Since 1999, the state of Nuevo Leon has been the largest recipient of Foreign Direct Investment (FDI) in Mexico, with more than $64 billion USD.
In the last two years, in the “post-pandemic era”, Monterrey has become one of the most attractive destinations for nearshoring investments, not only in Mexico, but also in North America.
Monterrey has led the country for the past 10 years in industrial absorption, averaging around 8 million square feet per year. Since 2021, the city has been doubling that statistic, posting a record year in 2021 with 16 million square feet, and quickly breaking its own record the following year, with 20 million square feet in 2022.
In 2022, the state of Nuevo Leon recorded $4.4 billion USD in Foreign Direct Investment, its highest figure since 2010, the year Heineken acquired local brewer Cuauhtémoc Moctezuma.
Monterrey is home to major operations of the world’s most successful companies, such as Siemens, Bosch, Lego, Schneider Electric, Whirlpool, Callaway, Carrier, Denso, Hisense, Hyundai, LG, Mondelez, Philips, Mattel, and Hersheys.
If you want to learn more about the Monterrey region to invest in Mexico, please take a glance here.
Source: Invest Monterrey