Spanish firm to establish lithium battery plant in central Mexico

Spanish company Endurance Motive is set to install Mexico’s first lithium battery assembly plant for micro electromobility in central Puebla state.

The news was announced by the governor of Puebla, Sergio Céspedes, on his social media account on the platform X, previously known as Twitter, noting that he met the CEO and co-founder of the firm, Ander Muelas, who confirmed the investment.

"It is with great pleasure that we announce a new and very special investment for Puebla ... Ander Muelas today confirmed the installation of the first lithium battery assembly plant for micro electromobility in Mexico, here in our state," the governor said.

Endurance produces lithium iron phosphate batteries for use in boats, last-mile delivery vehicles, and industrial equipment such as forklifts and small tractors.

Céspedes underscored that the installation of this first lithium battery plant in Puebla is an example of the favorable conditions offered by the state to attract investments and pointed out that its actions to promote electromobility "are producing results."

The company plans to start producing batteries for the Mexican market in March 2024, with the aim of reaching American customers in the coming years, Francisco Mollá, director of Endurance México, was cited as saying by Reuters.

The executive declined to provide any details of the amount to be invested by the company, which was founded six years ago and is still relatively small.

Mollá said the high levels of investment and technical expertise required for battery assembly had created significant barriers for companies to start producing in the country, but growing demand was beginning to justify the high costs.

"This is already a road of no return," Mollá added.

The company chose Puebla because of its location in central Mexico and proximity to a large Volkswagen vehicle manufacturing complex and various automotive industry suppliers, according to the executive.

Mollá also said that the batteries that Endurance produces in Mexico will initially contain 30-35% of national components with lithium cells imported from China, and the firm intends to increase the proportion of local content to over than 50% within a couple of years.