Lopez Obrador had previously ruled out such a plant in the arid northern state of Nuevo Leon where Monterrey is the capital, because he didn’t want water-hungry factories in a region that suffers water shortages. But he said Musk’s company had offered commitments to address those concerns, including using recycled water. “There is one commitment that all the water used in the manufacture of electric automobiles will be recycled water,” Lopez Obrador said.