Mexico’s Olinia EV Plant: Which States Want to Host It?

The Olinia project, announced by President Claudia Sheinbaum, is set to create Mexico's first electric vehicle (EV) manufacturing ecosystem. Several states, including Mexico City (Iztapalapa), Jalisco, and Puebla, are competing to host key production facilities.

"We are fully prepared to contribute the technology, experience, and supplies needed to produce Olinia's new electric units," said Rubí Sánchez, President, Iztapalapa Business Association. According to the local business association, Iztapalapa generates 3.48% of Mexico City's GDP. Its economic strength is bolstered by a workforce of over 850,000 people and strong ties to academic institutions and business incubators. 

Jalisco Governor Pablo Lemus highlighted his state's bid during the "Economía Moral y Trabajo" forum, citing Jalisco's technological capabilities, including semiconductor manufacturing and software development. "We want to be considered for this new plant. Jalisco offers the Lagos de Moreno cargo airport and excellent rail and road connectivity to Mexico City," he said, suggesting Los Altos Norte as an ideal plant location due to its logistical strengths. 

Puebla, a prominent player in Mexico's automotive sector, is also a strong contender for hosting parts of Olinia’s production chain. According to Roberto Capuano, Head of Sustainable Development, Puebla’s extensive auto parts supply network and advanced technology make it a compelling location. "We are exploring ways to reduce costs by focusing on local assembly. The production process will be region-based to minimize long-distance transportation," said Capuano.

“We are fully prepared to accommodate any automotive initiative that promotes the state’s economic development,” said Puebla Governor Alejandro Armenta. The modular production approach would enable Puebla to manufacture specific components in collaboration with other regions.

The Olinia project involves partnerships with institutions like the National Polytechnic Institute (IPN) and the National Technological Institute of Mexico (TecNM). Vehicles will be built on a multipurpose modular platform, enabling the shared use of core components like the chassis, motor, and drivetrain. The first model is set to debut in 2026, coinciding with the FIFA World Cup hosted by Mexico, the United States, and Canada. The initiative aims to develop three EV models for diverse applications, including personal mobility, neighborhood transport, and last-mile delivery.

In addition to Iztapalapa, Jalisco, and Puebla, states such as San Luis Potosi, Sonora, and Coahuila have also expressed interest in hosting production facilities.