Spain's Endurance to produce lithium batteries at Mexico auto hub
12/09/2023 23:21
MEXICO CITY, Sept 12 (Reuters) - Spanish battery maker
Endurance Motive END.MC will start production in the central
Mexican state of Puebla next year, becoming one of the first
firms to assemble lithium batteries for vehicles in the country,
an executive said on Tuesday.
Endurance assembles lithium iron phosphate batteries for use
in boats, last-mile delivery vehicles and industrial equipment
such as forklifts and small tractors.
The company plans to begin production in March 2024 for the
Mexico market, with the goal of reaching U.S. clients in the
coming years, said Francisco Molla, Endurance's Mexico director,
in an interview.
He declined to say how much was being invested by
Endurance, which he said was founded six years ago and is still
small.
Mexico has attracted more investment in the electric
mobility sector as automakers shift away from gas-powered
vehicles, but battery makers have yet to gain a foothold.
Molla said the substantial investment and technical
expertise needed for battery assembly had created high barriers
for companies to begin producing in Mexico. However, growing
demand was beginning to justify the high costs.
"I'm not going to say it's mainstream, but now it's taking
off, there's no going back," he said.
The company chose Puebla for its central location, and will
open near a large Volkswagen VOWG_p.DE complex and various
auto industry suppliers, Molla said.
Endurance's batteries in Mexico will initially contain about
30% to 35% domestic components with lithium cells imported from
China. Molla said the company aims in a couple of years to boost
local content to more than 50%.
(Reporting by Daina Beth Solomon; Editing by Jamie Freed)
((daina.solomon@thomsonreuters.com; +52 55 5282 7150;))