Investment in the new EV facility was initially said to be worth $1bn according to Nuevo Leon governor Samuel Garcia., but this comment was later retracted. Credit: 𝔑𝔦𝔩𝔰 𝔅𝔬𝔤𝔡𝔞𝔫𝔬𝔳𝔰 via Unsplash.

South Korea-based car manufacturer Kia is planning to construct a new electric vehicle (EV) factory in Mexico, reported Yonhap News Agency, citing Nuevo Leon governor Samuel Garcia.

“More good news! Nuevo Leon consolidates as the ELECTROMOBILITY HUB: Kia once again bets on Nuevo Leon with an investment to expand its plant and produce two KIA car models,” Garcia was quoted as saying in a tweet.  

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Garcia was in Seoul, South Korea for an international conference aimed at fostering collaboration between South Korea and Central America, the news agency reported.

While the governor made no more mention of specifics such as the models that would be produced in the new plant, he uploaded a picture of Kia’s EV9 SUV.

Initially, he stated that the investment may be as high as $1bn but subsequently deleted that particular part from his post.

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Although nothing has been officially finalised yet, Kia stated that it was thinking about the matter from a mid-to-long-term viewpoint.

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Kia inaugurated a facility spanning three million square feet in Pesqueria, located near Monterrey, Nuevo Leon, Mexico, in 2016.

The facility encompasses educational and testing features centres.

The production capacity of the complex is estimated at 400,000 units annually, with two models being the primary focus, namely the K3 sedan and the subcompact Pride being manufactured.

By constructing a new EV factory in proximity to its current facility, the car manufacturer will fulfil the requirements to qualify for national incentives provided by the US Inflation Reduction Act.

This legislation grants tax credits of up to $7,500 to purchasers of EVs manufactured in the US, Mexico, or Canada.