Mexico Has Ambitious Plans For Domestic EV Production

When the subject of electric vehicles comes up relative to Mexico, it’s largely in the context of overseas automakers setting up operations there. That includes both Tesla and BYD exploring the idea of building vehicles there; earlier this year, CNBC reported that China was also the largest automotive exporter to Mexico. That might be about to change, though, based on comments made by the country’s new president, Claudia Sheinbaum.

Sheinbaum was sworn in earlier this month, and looks to be shoring up Mexico’s domestic automotive industry — especially as it relates to EVs. As Electrek’s Peter Johnson reports, Sheinbaum recently outlined an ambitious plan for the nation’s automakers to start work on an affordably-priced EV to compete with options available from other countries.

Last week, Sheinbaum announced that a Mexican automaker would build a low-cost EV known as Olinia, which is the Náhuatl phrase meaning “to move.” She also spoke of bolstering the domestic supply chain — a hot topic elsewhere in North America as well. “We are going to generate supply chains so that everything that is in the electric car is manufactured in the country and we import as little as possible,” she said in Friday’s speech.

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As Eletrek reported, Mexico will also be prioritizing the use of its domestic lithium supply for its own auto industry. By comparison, from 1995 to 2021, the U.S. and Mexico produced comparable amounts of the mineral. It’ll be a little while before we see an Olinia for sale — but the prospect of more low-priced EVs in the market could shake things up in Mexico and beyond.