Two identified Chinese Tesla suppliers will reportedly invest almost $1 billion in Northern Mexico, according to Nuevo León Governor.
The announcement occurred before Tesla officially began the Giga Mexico’s development this week.
Investment details
According to Reuters, Nuevo Leon Governor Samuel Garcia disclosed during his trip to Shanghai that two major Chinese suppliers will each invest millions of dollars in the region.
Governor Garcia specified that Ningbo Tuopi Group will spend $700 million, while Hesai Tech’s investment is $260 million. Overall, these two Chinese companies will have a combined investment of $960 million.
The state official further expressed his delight about these major developments, saying that Tesla is already sourcing its electric vehicle batteries, software, computers, and other components from Nuevo Leon.
“We’re very happy because everything seems to indicate that the Nuevo Leon site will be twice as big, at least, as the one in Austin.”
Nuevo Leon Governor Samuel Garcia
Purpose
Ningbo is a Chinese manufacturer of shock-absorbing products and other automotive hardware.
Therefore, it will support Tesla’s operation in Giga Mexico, with such automotive components by establishing a local production factory in the region. According to Governor Garcia, the company aims to launch domestic operations by the end of 2023.
The state officials expect Ningbo to generate approximately 10,000 new jobs in the region.
Meanwhile, Hesai manufactures lidar light sensors. Its planned local facility can aid Tesla’s development of autonomous driving EVs in Nuevo Leon. Moreover, it is expected to create about 4,000 jobs for the local citizens.
Tesla’s progress in Giga Mexico
Governor Garcia’s announcement came just less than a month after Tesla secured the Environmental Impact Permits.
According to Teslarati, the permit officially allows Tesla to start the Giga Mexico’s development. Tesla will soon begin the construction at the site, considering the recent sightings of equipment and machinery across nearby roads in August.
See Also:
- Tesla to begin Giga Mexico development, drone footages suggest
- Tesla updates Giga Mexico’s vehicle production schedule to Q1 2025, per a report
- Tesla Giga Mexico construction may begin in March, with new EVs arriving the following year
- Tesla is developing a new production line for the $25,000 EV in Giga Mexico, per Gov. Sepúlveda
- Tesla to initially produce its next-gen affordable EVs in Giga Texas, not Mexico
Notably, Tesla previously announced plans to produce its sub-$30,000 electric car in the new Giga Mexico. It also plans to launch production as early as Q1 2025.
