Tesla, the leading electric vehicle manufacturer, has received crucial land-use permits from Mexico's federal environment ministry for its planned "gigafactory" in the northern state of Nuevo Leon, the state government announced on Tuesday. This development marks a significant expansion for Tesla in the region.

Covering approximately 645 acres, the plant represents a major industrial investment by Tesla. Although the company has not provided a detailed timeline for construction, its presence in Mexico signals a strategic move to bolster its manufacturing capabilities. The Nuevo Leon government estimates the project could cost over $5 billion. However, Tesla has not yet released an official capital cost forecast.

Tesla's CEO, Elon Musk, had previously expressed caution regarding the project's acceleration, citing the current uncertain economic climate. Nonetheless, the state government has committed substantial resources to support the venture, including more than $130 million for necessary infrastructure.

In preparation for the gigafactory, Nuevo Leon has agreed to build an electric power substation, a natural gas pipeline, railroad spurs, and essential road, water, and sewage services. This infrastructure support is seen as a commitment to the long-term success of the project.

The "Gigafactory" is expected to generate significant economic activity, with Nuevo Leon Governor Samuel Garcia predicting an influx of around $15 billion over the next two years from Tesla and its suppliers. This venture underlines Tesla's ongoing efforts to expand its global manufacturing footprint and its commitment to fostering sustainable energy and transportation solutions.