The company, which also has factories in the US, Germany and China, has chosen the northern border state of Nuevo Leon for the plant

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Tesla is to build a new electric vehicle factory in Mexico.

The company has chosen the northern border state of Nuevo Leon for the plant, Reuters has reported, which will reportedly be “the biggest electric vehicle plant in the world”.

The plant “will be supplemental to the output of all the other factories,” chief executive Elon Musk said on Wednesday. 

“It’s good news, yes, the company Tesla is coming,” said Mexico President Andres Manuel López Obrador earlier this week. “The battery part is still on hold but [it’s] the whole auto plant, which I understand will be very big.”

The company also has factories in the US, Germany and China.

Earlier this year, it was announced that BMW’s plant in San Luis Potosí, Mexico, will produce full-electric models for the Neue Klasse in the future.

BMW says that of the €800m investment at the plant, €500m is earmarked for construction of a new 85,000 sq. m assembly centre for high-voltage batteries, located on the plant grounds, which will add 500 additional employees to produce next-generation batteries.

In a recent interview with AMS, Harald Gottsche, plant director and CEO of BMW’s San Luis Potosi facility, said: “The big picture is that the automotive industry is moving to electric vehicles. That is quite clear.

“BMW has said that by 2030 significantly more than 50% will be fully electric cars. That means we have to transform our production sites to produce fully electric cars.”

Last year, LG Magna e-Powertrain, a joint venture between LG and Magna, celebrated the groundbreaking of its new plant in Ramos Arizpe, Mexico. Scheduled for completion this year, the facility will produce inverters, motors, and on-board chargers to support General Motors’ electric vehicle production.