Foton to Build Second Plant in Mexico to Produce EVs

Chinese truck maker Foton plans to build a second plant in Mexico to produce electric vehicles that it hopes to export to the US, according to a Bloomberg report.
Roberto Talavera, Foton's head of electric vehicles in Mexico, said the site for the plant has not yet been decided but is carefully considering Jalisco and Aguascalientes, where a number of major car plants are already located. According to the report, the new plant is expected to produce both traditional internal combustion engines and electric vehicles and will be put into operation by 2025.
In addition, Bloomberg said that Foton is also set to partner with CATL, the world's largest electric vehicle battery maker, in Mexico, which will provide technical support, maintenance and recycling for CATL’s batteries in the country. In response, representatives from CATL declined to comment.
In 2017, Foton opened its first plant in Mexico in Jalisco. Talavera said the company already sells electric trucks imported from China in Mexico, but the new plant will allow it to produce vehicles for the local market and eventually export them to the US, "with the goal of selling 3,000 units of electric vehicles in Mexico by 2025 ". Talavera said that the amount of investment in the new plant has not yet been determined, but it estimates that it will exceed $1 billion.
Some companies are looking to move their plants closer to US consumers to avoid the challenges posed by lengthy supply chains. As a result, Mexico is attracting more and more investment and attention.
Automotive production is a major driver of the Mexican economy and has slowly begun to rebound after a downturn over the past three years. Sales in Mexico are now showing signs of rebounding, but have not yet returned to the pre-pandemic levels.