During a press conference on Tuesday, the Mexican president made the announcement that Tesla will construct a new plant in Monterrey, Mexico, and will adhere to a number of commitments to address water scarcity.

According to President Andrés Manuel López Obrador—or AMLO, as he is more commonly referred to—Tesla agreed to use recycled water at the plant throughout the entire manufacturing process of automobiles, right down to the paint. He stated that the company will provide additional details regarding the new plant at its Investor Day event on Wednesday.

AMLO claimed that he spoke with Elon Musk, CEO of Tesla, on Friday and Monday.

AMLO stated, “He was very responsive— understanding our concerns and accepting our proposals.” The remarks made by the president were translated into English.

AMLO stated that the plant would require a significant investment and would create “many, many jobs.”

The industrial city of Monterrey, which is close to the border between the United States and Mexico, has long been regarded as Tesla’s top investment target. In China and Germany, the company currently operates two additional automobile factories outside of the United States.

“I want to thank Mr. Elon Musk, who was very respectful and understood the importance of addressing the problem of water scarcity,” AMLO said.

From Texas on Wednesday, Tesla’s Investor Day will be streamed live on Twitter and YouTube.