Tesla confirmed plans for a new battery manufacturing facility in the Mexican state of Nuevo León. The $5 billion investment represents one of the largest foreign investments in Mexico's automotive sector.
The factory will produce batteries for Tesla's electric vehicles and energy storage products. Construction is expected to begin later this year, with production starting in 2028.
Mexican officials welcomed the investment, noting it would create jobs and boost the country's position in the electric vehicle supply chain. Tesla already has a vehicle assembly plant in Texas, just across the border from the planned battery facility.
The announcement comes as Tesla faces increased competition in the electric vehicle market. Battery costs remain a significant portion of EV production expenses, and scaling up manufacturing could help reduce prices.
Analysts say the location offers advantages including proximity to Tesla's Texas factory, lower labor costs, and access to raw materials from Latin America. The factory will use Tesla's latest battery technology, which promises longer range and faster charging.