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Investors may be surprised to learn that the latest flashpoint for electric vehicle (EV) manufacturing is nowhere near the high-tech hubs of Silicon Valley or Shenzhen. It’s a town in northern Mexico called Santa Catarina, near Monterrey.

That’s where Tesla has announced it will build its first EV manufacturing plant in Mexico, a so-called gigafactory that is expected to cost $5 billion and will reportedly break ground next week, according to local development officials in the state of Nuevo León.