Japanese electric motor maker Nidec is planning to invest about $715 million to build a plant in Mexico to make electric car motors.

CEO Shigenobu Nagamori told Nikkei that construction is expected to begin some time in the next two years, and that the company’s focus will be on manufacturing products in a region to sell in that region.

Nidec currently produces its integrated e-axle, which  includes a motor, decelerator and inverter system, in China and Europe.

The company has predicted that it will produce 1.2 million e-axle units in the 2023 fiscal year, more than double this year’s figure, in response to soaring demand, mainly in China. It plans to increase e-axle production capacity to 7 million per year globally by March 2026.

Source: Reuters