Nidec, a Japanese maker of electric motors will build an electric motor factory in Mexico with an investment of $715 million, its chief executive said in an interview with the Nikkei newspaper.
Construction of the electric motor factory is expected to start during or after the next business year from April.
Nidec CEO, Shigenobu Nagamori said his company focuses on making products in a region to be sold in that region.
Nidec is known for producing the traction motors used for electric vehicles, known as “e-axles,”.
The E-axle is an integration of an integrated motor, decelerator and inverter system that is equivalent to an engine for a gasoline car.
Kyoto-based Nidec has been manufacturing e-axles at their facilities located in China and Europe.
Nidec aims to manufacture 1.2 million “e-axle” units in the 2023 financial year, more than double the number planned for this business year, in response to soaring demand especially in China.
The company plans to increase its “e-axle” production capacity to 7 million per year globally by March 2026.
