Japanese manufacturer Nidec, which makes motors for electric vehicles (EVs), will build a $715m factory in Mexico, Nikkei Asia reports.
The plant will make the “e-axle” drive system, which combines an electric motor, power electronics and transmission in a single unit. At present Nidec makes this product in China and Germany, but plans to begin production in the Americas to meet an expected surge in demand from the US market.
Globally, the e-axle market was worth around $7.2bn in 2020, but is predicted to expand to almost $66bn by 2028.
The Kyoto-based company aims to produce 7 million e-axles by 2026, 1.3 million of which will come from the Mexican plant.
At present, it produces around 600,000 units a year, mainly for Chinese automotive companies Guangzhou Automobile Group and Geely.
No location was given for the plant, but construction is expected to begin during the 2023/24 financial year.