Manufacturers and suppliers nearly doubled recent investments in Mexico and Brazil in recent weeks, committing more than $1.9 billion, a notable jump from about $1.1 billion during the corresponding period last year. Most of this funding is going into electric vehicle (EV) production, battery components, and charging infrastructure, showing a clear move toward electrification. Other investments include aerospace maintenance, specialty steel, and AI server assembly, boosting capacity in sectors that rely on machining, forming, and automation equipment. Mexico Runs on Batteries In just the first half of 2026, investment in electromobility in Mexico topped $2.07 billion. This includes spending on electric vehicles, batteries, high-voltage harnesses, automotive electronics, hybrid systems, thermal management, and charging infrastructure. BorgWarner plans to spend $49 million by 2028 to expand its San Luis Potosí operations, aiming to boost production of components for EVs. The new facility should be fully operational by early 2028. Sungwoo is investing about $18.5 million in Monterrey to make safety parts for secondary batteries, automotive electronics, and energy storage systems, with production expected to start later this year. CHL/Henglong Mexico Automotive will spend $42 million in Saltillo, Coahuila, to produce steering systems for commercial and passenger vehicles, with operations set to begin by late 2027. Clarios has opened a $147 million automotive distribution center in Torreón, Coahuila, creating more than 1,250 jobs and featuring automated capacity for 300,000 batteries and 11 million units each year. The center started operating in the first quarter of 2026. Vemo launched two high-capacity charging stations and a specialized EV service workshop in Nuevo León as part of a $47.5 million program commissioned in the first half of 2026. Beyond the Powertrain Three major announcements outside the electric vehicle supply chain are: Safran opened a 50,000 square-meter aerospace complex in Querétaro with a $140 million investment, creating nearly 500 specialized jobs to service CFM56 and LEAP engines for customers throughout the Americas. TYASA started the first phase of its Special Steels plant in Ixtaczoquitlán, Veracruz, a $250 million project that will produce 400,000 tons annually. In Ciudad Juárez, Inventec is investing $450 million to expand its manufacturing platform for high-performance servers used in artificial intelligence and other advanced technologies. Port infrastructure is also growing. Hutchison Ports TIMSA invested about $4 million, in two 45-ton electric rubber-tired gantry cranes for its Manzanillo terminal. The Numbers Behind the Announcements In the first quarter of 2026, virtually all of San Luis Potosí's exports came from manufacturing, totaling $6.2 billion. Transportation equipment for the automotive industry made up $4.5 billion of that amount. Supplier development is growing as well. CAINTRA’s +PYMEX program led to $1.7 billion in extra purchases from small and medium businesses in Nuevo León. The program focuses on business matchmaking, training, and consulting to boost competitiveness and reduce reliance on imports. Brazil Plugs In In Brazil, General Motors announced another $675 million investment for hybrid vehicle development, plant upgrades, and expanding engineering and manufacturing. These investments are backed by government incentives such as Brazil’s Rota 2030 program, which provides tax benefits and credits to automakers investing in advanced vehicle technology and local production. Recent policy changes, such as lower import duties on electric vehicles and hybrid parts, have also helped the industry. MG Motor will invest $80 million to build the electric MG4 Urban and MGS5 at the PACE plant in Horizonte, Ceará, leveraging state investment incentives. Renault Geely do Brasil has begun producing the all-electric Geely EX2 at Renault’s Curitiba plant in Paraná, leveraging incentives for electric vehicle adoption. Separately, JBS and Âmbar Energia will invest about $13 million to multiply biomethane production from Friboi waste by about five, supporting cleaner industry and logistics. Chinese automakers continue investing in Brazil, with eight now operating or building operations there. BYD secured an extension of the tax exemption on semi-knocked-down imports. GWM is building a plant in Iracemápolis, São Paulo. As more Chinese brands enter the market, competition is likely to increase, which could speed up electric vehicle adoption, lower prices, and push established companies to innovate and localize more quickly. For more information on taking advantage of Mexico and Brazil’s opportunities, please contact Carlos Mortera at cmortera@AMTonline.org. AMT Global Services helps manufacturers expand into global markets with practical, on-the-ground support. From AMT Global Tech Centers that provide local sales, technical, and channel development assistance, to USA Pavilions at leading international trade shows, our team offers the resources and expertise to help you establish a presence, connect with customers, and grow internationally. Whether you're ready to enter a new market or just exploring your options, learn more about AMT's international offerings. Further Reading: International News From the Field: India’s Growing $19B Semiconductor BetInternational News From the Field: Mexico Shifts Gears, Brazil Goes DigitalInternational News From the Field: On the Ground at Vietnam’s Manufacturing Technology ShowHow to Register as a U.S. Free Trade Zone or Foreign Trade Zone
Mexico and Brazil drew $1.9B in manufacturing capital this period, up from $1.1B last year, led by EV and battery investment.
Subscribe to Newsletters
Get the latest news from IMTS delivered to your inbox.