Chinese battery giant CATL is considering two locations in Mexico for electric vehicle battery production that have the potential to supply major US manufacturers such as Tesla and Ford, Bloomberg reported today.
The two sites considered for the site are Ciudad Juarez, Chihuahua, and Saltillo, Coahuila. Both locations are near the Texas border, the report said, citing people familiar with the matter.
To build a production facility in Mexico, CATL is considering a $5 billion investment in the project.
CATL also has the option to split its investment between two locations – one in the United States and one in Mexico. However, the final decision and the value of the investment have not been revealed with certainty, the report added.
The CATL electric vehicle battery production facility will help Mexico consolidate its role in the electric vehicle industry supply chain in North America, the Bloomberg report noted.
CATL is the world's largest maker of electric batteries, with a 35 percent share of the global market in the first quarter of 2022. That's higher than second-place LG Energy Solution's 15.9 percent, according to a report released in May by US-based SNE Research. Seoul.