Japanese electric motor maker Nidec is planning to open a manufacturing plant in Mexico from which to build its motors, the company CEO Shigenobu Nagamori revealed on Friday. He added that the construction of the $715 million plant is scheduled to commence in April next year.
The traction motor in question called an “e-axle” is used to power electric vehicles. Comprised of an integrated motor, decelerator, and inverter system, the motor acts as the equivalent of an engine in gasoline cars.
Nagamori explained that the reason for opening a production plant in Mexico is that the Japanese company is looking to expand its business, and operating a manufacturing plant in Mexico will make it easier to sell its motors across the region.
Following a surge in global demand for its motors, particularly from China, Nidec has projected that it would need to produce 1.2 million units of “e-axle” during the 2023 financial year. This is more than double what the company produced during the 2022 business year.