Haven't the last 2 Gigafactories also expected to build batteries on site? Is there a reason that wouldn't also be the case in Mexico. One of Elon's business philosophies was to manufacture where most efficient based on final destination or something to that effect. The thinking was along the lines of building the factories near the natural resources needed and the final destination for deliveries.
- Does Mexico have Lithium near the proposed site?
- Is Tecma large enough to handle the demand?
- It would seem to be a logical market for the rumored Model 2.
Tesla continues to be a leader in electric vehicle innovation and production, expanding from high-end fully electric cars to solar power systems and charging stations.…
gearandcylinder.com
"The 4 main countries that produce lithium are Australia, Chile, China, and Argentina. In South America, the borders of Chile, Argentina, and Bolivia create what is colloquially referred to as the Lithium Triangle as it is believed that about 75% of Earth’s lithium deposits are located in this region. "
Could a South American Gigafactory be far off? If the IRA has a significant impact on Tesla's bottom line, it may be a while. But, what are the chances that Chile, Argentina or Bolivia could establish their own "local made" incentives? Paging
@unk45.
I reply with 'Perhaps'. The largest potential market, the best supply of qualified engineers and skilled workers is probably Brazil with parts of Minas Gerais State the easiest lithium and other elements source locations, and Itajubá is Airbus helicopter, plus Embraer in São José dos Campos, SP plus Mercedes Benz in Rio de Janeiro State. These core locations are quite near each other and all three States are eager to support new foreign investment, especially since most of the political disarray has diminished (obviously, just like the US and most of the rest of the world, the political situations are far less stable than they were a few years ago.
It does make sense to have one of the next GFs in one of these States, not least because the alleged forthcoming Mexican GF can easily cooperate with a Brazilian plant, including production cooperation with, say, Vale, and both Mexico and Brazil having trade agreements with Mercosur. There are, of course, stresses in those relations too.
Overall the combination of Mercosur and Mexico makes a rapid Brazilian investment in the near future almost irresistible. Greatly enhancing that is the desire of the new Federal government to accelerate renewables.
FWIW the clear change in optimism from me is related to both the incoming environmental priorities and the new government desire to mend frayed fences. Not easy, but the combination of Tesla and SpaceX makes the Brazilian aerospace and industrial sector drool.
With the world's largest concentrations of helicopters and turboprop aircraft, plus attractive BEV markets the prospects for labor supply plus raw materials become powerful attractions.
Few people outside Brazil (other than aerospace people) understand the reality.
foundandexplained.com
The basis of 'perhaps' is that domestic Brazil newspapers, TV news and columnists have suddenly become Musk skeptics. The banning of journalists drove a frenzy that had not previously been evident here. rescinding the ban is not helping at all. Given the topic of this post this is directly relevant to how Tesla and SpaceX will be received in Brazil. This may dissipate soon, although that seems unlikely without a cessation of political commentary from the source.
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