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Chinese suppliers for Tesla announced a significant investment in the northern Mexican state of Nuevo Leon.

During a visit to Shanghai, Nuevo Leon Governor Samuel Garcia shared that Ningbo Tuopu Group and Hesai Technology will invest nearly a billion dollars in Nuevo Leon. The investments comprise “$700 million from Ningbo Tuopu Group” and “$260 million from Hesai Technology,” according to a representative from Nuevo Leon.

This follows Tesla’s March announcement of constructing a significant plant in the state, with the company’s expected investment surpassing $5 billion. Ningbo Tuopu Group, which specializes in shock absorption products and other automotive components, aims to “begin production by the end of the year in Nuevo Leon.”

Hesai Technology, on the other hand, is known for producing lidar light sensors used in autonomous vehicles and robots. The two firms’ investments are projected to generate a significant regional employment boost. According to State officials said, “Ningbo is expected to create some 10,000 jobs, and Hesai, up to 4,000.”

Tesla, which already sources multiple components from Nuevo Leon, has yet to commence its factory construction in the area.