(NewsNation) — A new report from the Drug Enforcement Administration has confirmed Mexican cartels are operating fentanyl “super labs.”

The cartels, specifically those in Sinaloa, have also been working on building global supply chains with the help of Chinese chemical brokers and encrypted platforms, the report said. They rely on freight forwarders and trans-shipment companies to bring in mislabeled chemicals.

Some shipments have reportedly been routed into the United States or Canada and then taken to Mexico.

Mexican authorities partnering with US authorities on cartels

Mexican authorities have uncovered massive chemical supplies and industrial-scale lab equipment, sometimes working with U.S. partners. Authorities have seized many items, including:

• Hundreds of containers filled with acetone, toluene, ethanol and more
• Metal reactors
• Condensers
• Burners
• A stash site with more than 2,000 liters of chemical waste

Some agents said the shift on the ground is real but that it might not be enough.

“I have seen an increase of activity in a positive way with Mexico. Unfortunately … it’s not nearly close to what I think the U.S. government has in mind to eradicate the cartels from existence,” retired special agent Victor Avila told NewsNation.

Despite Mexican and U.S. agencies working together more than before, the DEA said Mexican cartels have continued to evolve — including by shifting platforms and scaling operations, making them harder to find.

Mexican cartels taking operations online: DEA

The DEA said Mexican cartels are now taking their operations online, advertising drugs and recruiting dealers. They have also reportedly started planning transactions through social media apps.

Canadian authorities busted one of these “super labs” in 2024. The volume was significantly lower — 6.3 kilograms seized compared to more than 9,000 kilograms from Mexico — though officials worry that Canada could fill the gap if production were halted.

Canadian labs have yet to reach the same scale, but the DEA said the infrastructure exists. The DEA warned that when it comes to Canada becoming a major secondary hub in fentanyl trade, it’s not a matter of if but when.