Tesla Could Build Gigafactory in Nuevo Leon

Tesla could build a gigafactory in Nuevo Leon with an initial investment between US$800 million and US$1 billion. In other news, experts look forward to the future of Mexico’s automotive industry. Thanks to the USMCA and the country's nearshoring capabilities, Mexico is poised to become the third largest auto part producer amid the global supply chain reorganization, according to  Francisco González, Executive President, INA.

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Audi Workers Extend Strike Deadline to January 11
Worker representatives from the Audi assembly plant in Puebla have postponed their strike from Jan. 1 to Jan. 11, 2023. The unionized employees are seeking to reach an agreement regarding wage increase after workers declined the first two proposals negotiated between Audi and the Independent Union of Audi Mexico Workers (SITAUDI).

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Foxconn, NVIDIA Partner to Build Autonomous Vehicle Platforms
The Taiwanese multinational company Foxconn and chipmaker NVIDIA, announced their partnership strategy to develop autonomous vehicle platforms for EVs. Foxconn will function as a Tier 1 manufacturer, producing electronic control units (ECUs) based on the NVIDIA Drive Origin platform, as both companies seek to supply for the global automotive market demand.

“This strategic cooperation with NVIDIA strengthens the intelligent driving solutions Foxconn will be able to provide. Together, we are enabling the industry to build energy-efficient, automated vehicles,” said Eric Yeh, Senior Director of the Software Development Center, Foxconn.
 

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Tesla, Piedmont Amend Deal Over Lithium Supply
The US automaker and the lithium-mining company announced an agreement that will give Tesla greater access to the domestic supply of metals required for EVs. The deal starts in 2H23 and ends in 2025.

“Piedmont and Tesla have mutually agreed to amend their previous offtake agreement with the terms of this new agreement, which are binding for a three-year term and include an option to renew for another three years. Under the amended agreement, Piedmont has agreed to deliver approximately 125,000mt of SC6 [lithium concentrate] to Tesla,” reads the press release.

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Tesla May Announce New Investment in Mexico
Mexico could move closer to its goal of becoming a EVs manufacturer powerhouse as Tesla could build a gigafactory in Nuevo Leon. This project will have an initial investment between US$800 million and US$1 billion aimed to produce components for the company’s current models. In the future, the automaker could assemble new models at lower cost when compared to its other manufacturer plants. 

Last year, Elon Musk, CEO, Tesla, visited Mexico to find the best state for the company’s new factory. The company is expected to unveil its new project in early January.

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Mexico to Become World’s Third Largest Auto Part Manufacturer

In the focal point of a global supply chain restructuring, Mexico maintains its course to become the world’s third largest auto part manufacturer. The USMCA’s increase in Regional Content Value (RVC) and the nearshoring boom have been critical components for the country’s increase of auto part production, surpassing Japan, whose production continues to decline.

”The path to the future of the automotive and auto parts industry enables the transformation that we are experiencing, opening up the opportunity to reach positions of greater leadership in mobility. That is an ambitious goal, but it is achievable,” said Francisco González, Executive President, INA.

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