Mexican President Andrés Manuel López Obrador has warned that a persistent water shortage in the country’s Northern section may inhibit production at Tesla’s potential facility in Nuevo Leon.
Water is just one of the numerous materials consumed in the process of producing vehicles, but it is a vital one. Water is not only the primary medium used to help cool machinery, but it is also a key ingredient as a dilutant in the paint shop of vehicle manufacturing plants. Due to this significant water usage, Mexico’s President Andrés Obrador has warned that the water shortage in the northern part of the country may inhibit manufacturing, such as at the proposed Tesla facility in Nuevo Leon.
President Obrador addressed the water use concern at a press conference earlier today.
Dice @lopezobrador_ que va a hablar con los directivos de @Tesla lo que seguro incluye a @elonmusk y que lo está viendo @m_ebrard y con @R_Ramirez_O pero en conclusión él no quiere que sea en Nuevo León bajo el argumento del agua. pic.twitter.com/LGRm8Ya6It
— Rodrigo Pacheco (@Rodpac) February 20, 2023
Translated to English, the President stated:
“I’m going to talk to the managers [of Tesla]. The Secretary of Foreign Relations, Marcelo Ebrard, is doing it very well with the Secretary of Finance to order and see where we can guarantee that we have water and also electricity and all services, but no longer continue to exploit, well, these, these aquifers…”
The upcoming Tesla facility in Mexico is rumored to be constructed in the Northern State of Nuevo Leon, precisely where the President highlighted the drought problem. Furthermore, Tesla’s facility is set to be one of the largest power users in the state, potentially overwhelming the already fragile grid in Northern Mexico.
This is not the first time Tesla has encountered environmental and power concerns from local officials. In Germany, Tesla has run into non-stop regulatory issues, particularly considering its water use.
Tesla is expected to confirm the location and more details regarding the upcoming production facility in Mexico at its Investor Day at the beginning of next month. Though, it appears Tesla will be under pressure from regulators to monitor and limit their resource use at its potential new production facility.
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