Kia has announced a major expansion of its electric vehicle strategy in North America with a US$649 million investment that will bring production of the Kia EV3 to Mexico.
Beginning August 4, the compact electric SUV will be assembled at the company’s existing manufacturing plant in Pesquería, Nuevo León, making Mexico the second global production hub for the EV3 after South Korea.
The investment goes well beyond vehicle production, including charging infrastructure, renewable energy projects, water recycling initiatives, and job creation, while reinforcing Mexico’s growing role in the global electric vehicle supply chain.
Kia EV3 Production Moves to Mexico
Rather than constructing a new factory, Kia is upgrading its existing assembly line in Pesquería to accommodate EV3 production. The strategy allows the automaker to expand manufacturing capacity more efficiently while navigating changing market conditions, tariffs, and evolving North American trade policies.
The move represents an important milestone for Kia, as the EV3 becomes the first battery-electric vehicle the company will both manufacture and sell in Mexico. A significant portion of production will remain in the domestic market, while additional vehicles will be exported to regional markets across Latin America.
Supporting Plan México Through Greater Local Content
The Mexican-built EV3 will launch with approximately 27% local content, with Kia planning to increase that figure over time.
Initially, key components such as battery packs will continue to be imported from Asia, while vehicle assembly takes place in Mexico. Increasing domestic value-added aligns with the government’s Plan México, an industrial strategy focused on attracting advanced manufacturing, reducing imports, and strengthening the country’s automotive supply chain.
The announcement also comes as North America faces uncertainty surrounding the future review of the USMCA trade agreement. During recent negotiations, the United States proposed stricter rules requiring a greater percentage of North American-built vehicles to originate in the U.S. Mexico, meanwhile, continues pursuing policies aimed at attracting advanced manufacturing and emerging technologies.
Charging Infrastructure Becomes Part of the Investment
Recognizing that EV adoption depends on more than vehicle availability, Kia is simultaneously investing in charging infrastructure across Mexico.
The program includes:
– Residential charging solutions
– Public charging stations along urban areas and major highways
– Dedicated EV customer support services
– Mobile vehicle-to-vehicle charging units designed to assist stranded EV drivers
The charging network is expected to play a key role in supporting wider adoption of electric vehicles throughout the country.
Renewable Energy and Water Recycling Projects
Part of the US$649 million investment is dedicated to reducing the environmental impact of Kia’s manufacturing operations.
The company is building a 2 MW solar power installation at its Pesquería facility, with plans to expand capacity to 8 MW by 2030. Once completed, the system is expected to generate enough electricity to supply more than 4,000 Mexican households annually.
Kia is also constructing a second wastewater treatment facility capable of processing approximately 1,050 cubic meters of industrial water per day, allowing roughly 70% of the plant’s water usage to be recycled. The initiative is particularly significant in Nuevo León, a region that has experienced recurring drought conditions in recent years.
Mexico Strengthens Its Position as an EV Manufacturing Hub
Kia’s investment arrives as Mexico continues attracting global automotive investment despite increasing geopolitical uncertainty and changing trade dynamics.
Government officials report that more than 1,180 investment projects worth approximately US$404 billion are currently in various stages of development across the country. South Korea also remains one of Mexico’s most important investment partners, with over 2,000 South Korean companies operating nationwide.
By choosing Mexico as the EV3’s second production location, Kia further strengthens the country’s position as a regional center for electric vehicle manufacturing while supporting broader efforts to expand electrification across Latin America.
Kia EV3 Specifications
Kia has not yet confirmed which EV3 variants will be produced in Mexico.
In Europe, the EV3 is offered with 58.3 kWh and 81.4 kWh battery options, delivering up to 600 km (373 miles) of WLTP driving range. The electric SUV features a 150 kW front-mounted motor and a 400-volt electrical architecture, although specifications for Mexican-built models will be announced at a later date.
Looking Ahead
The start of EV3 production marks a significant milestone for Kia’s electrification strategy in North America. By combining local manufacturing, charging infrastructure, sustainability initiatives, and workforce expansion, the automaker is making one of its largest commitments yet to Mexico’s growing EV industry.
With production beginning in early August, the project positions both Kia and Mexico for an increasingly important role in the rapidly evolving electric vehicle market.
[source: Reuters]
