Construction of Tesla's US$5bn northern Mexico gigafactory reportedly stalled

US electric vehicle manufacturer Tesla is reportedly behind schedule with its plans to build a US$5bn gigafactory in northern Mexico, where it will produce its next-generation cars in Latin America.

There has been a lack of construction activity at the Santa Catarina site on the limits of Nuevo León state capital Monterrey for several months, which is due to permitting delays, according to an official document cited by Forbes México. 

The document quoted, which is a request for change of land use for the 260ha site, states that the company’s local subsidiary, Tesla Manufacturing Mexico, needs approval from environmental ministry Semarnat before it can request construction permits. 

The company underscores that the site chosen is not on any protected land in the state and it has promised to carry out conservation works and ensure that production is geared towards sustainable development of the area.

Tesla estimates that construction of the plant will take 36 months, but it has yet to publish greater details of the project. The plant was confirmed by Elon Musk in early March.

Last week, urban development council Conared said it approached Tesla to propose urban projects around the plant, while state-run power utility CFE disclosed recently the company has requested permits for vehicle charging hubs in three cities.