Mexican President Andres Manuel Lopez Obrador has warned that persistent water shortages in the northern part of the country could hamper production at a potential Tesla facility in Nuevo Leon.
Water is just one of the many materials that are consumed in the vehicle production process, but it is a vital one.
Not only is water the primary medium used to help cool machinery, but it is also a key ingredient as a paint shop thinner in automobile manufacturing plants.
Because of this high water use, Mexico's President Andres Obrador has warned that water shortages in the northern part of the country could hinder industrialization, as in the case of Tesla's proposed facility in Nuevo León.
President Obrador spoke about the concern about water use at a press conference earlier yesterday.
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
"I'll communicate with the Tesla administration," the president stated. The Minister of External Relations, Marcelo Ebrard, is doing a very good job with the Minister of Finance to see where we can ensure that we have water, electricity, and all services."
It is rumored that Tesla's next facility in Mexico will be built in the northern state of Nuevo León, precisely where the president has highlighted the drought problem.
Moreover, Tesla's facility is set to be one of the largest energy users in the state, potentially taking over the already fragile grid in northern Mexico.
This isn't the first time Tesla has faced environmental concerns and strong concerns from local officials.
In Germany, Tesla has faced ongoing regulatory issues, particularly given its water use.