Link EV to Build US$265 million Plant in Puebla
Renewable energy company Citizens Resources, in collaboration with Chinese EV Dynamics and Spanish QEV Technologies, will invest US$265 million to open an EV plant in Puebla.
The plant will operate under the name of Link EV and will be located close to Volkswagen’s facilities to take advantage of the region’s developed supply chain. Link EV, which combines the experience of electromobility solutions companies Citizens Resources and QEV Technologies with EV Dynamics, will manufacture last mile and passenger EVs, with a starting annual capacity of 1,400 units in four production lines.
Construction of Link EV’s plant in Puebla will start in July 2022 and production will begin in 1Q2023, creating 400 new direct jobs and 1,200 indirect jobs, said Sergio de la Vega, CEO, Link EV, to Milenio. Before the COVID-19 pandemic, EV Dynamics had already commercialized vehicles in the Mexican market. However, supply chain disruptions and logistics issues boosted the firm’s decision to create Link EV and open a plant in Puebla to serve the Americas market, taking advantage of USMCA, explained de la Vega.
“The idea of setting up a plant in Mexico stems from the problems we are experiencing in supply chains and the logistics chain. Today, production of EVs is very restricted, limited by supply chains. Also, producing in Asia makes the transportation issue very difficult,” said de la Vega.
Half of the new plant’s production will be destined for the Mexican market, while the other half will be exported to Peru, Ecuador, Colombia and Costa Rica, where “demand for EVs starts to grow,” he said. “We believe that production is going to be small at first and Mexico probably has the capacity to absorb all of it, however, we want to allocate an important part for exports, because it is also important to begin to position ourselves in other markets where there is already a demand for this type of product and there really is no supply,” said de la Vega.
Link EV will join OEMs Audi and Volkswagen in Puebla, where the automotive industry represents 43.4 percent of the state’s GDP. “We are very honored to receive in Puebla representatives of the company Link EV, which will produce EVs, an investment that will trigger competitive conditions for our state,” tweeted Governor Miguel Barbosa