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The agave plant. Tequila is made from the agave, pronounced 'Uh-Gah-Vee'. A native plant to Mexico, its name originates from a Greek word meaning 'noble' or 'admirable'. In Mexico the plant is also sometimes referred to as 'Maguey' (pronounced 'mag-gay').
Blue agave is a succulent that has many uses. Sugar and liquors like tequila can be made from agave. Blue agave grows in warm climates in Mexico and the American Southwest. Large plantations of specific species of agave can be found in Mexico.