Kia has revealed a new direction for the production of the EV3, choosing to modernize its current manufacturing plant in Pesquería, Nuevo León, instead of establishing a new facility in Mexico. This decision to upgrade the existing assembly line helps the company save costs and speeds up the production timeline. Production of the EV3 is set to begin on August 4, with the compact electric SUV manufactured at the site for domestic sales and export to other parts of Latin America.
This shift in production represents a significant moment for Kia in Mexico, as the EV3 becomes the first fully battery-powered vehicle to be produced and sold in the country. At launch, roughly 27% of the car’s components will be sourced locally, including parts of the vehicle body and certain electrical systems. However, essential parts like battery packs and specific electronics will initially be imported from Asia. The company has outlined plans to gradually boost the percentage of locally sourced content in line with national industrial objectives.
The broader US$649 million investment also includes the construction of a 2 megawatt solar power facility at the Pesquería plant. Kia aims to expand this solar capacity to 8 megawatts by 2030. When fully operational, the solar system is expected to provide enough electricity to power more than 4,000 Mexican homes annually. In addition, the company is working on a new wastewater recycling system capable of processing about 1,050 cubic meters of industrial water per day, with a goal of reusing 70% of the plant’s water supply.
To support the widespread adoption of electric vehicles, Kia is also launching a wide-reaching charging network across Mexico. The infrastructure will feature fast-charging stations in urban areas and along key highways, as well as mobile charging units for emergency use. The plan also includes residential charging solutions and a dedicated support system for EV owners, making it easier for consumers to transition to electric transportation.
Mexico Becomes a Central Hub for Electric Vehicle Manufacturing
Kia’s decision to manufacture the EV3 in Mexico supports the country’s ongoing push to become a central player in the global automotive industry. Over 1,180 projects are currently underway, with an estimated combined value of around US$404 billion, showing Mexico’s strong appeal for international investment. South Korean companies are a key part of this trend, with more than 2,000 firms from the region already operating in the country. The EV3 project represents one of the most significant recent investments and contributes to growing regional interest in electric vehicle manufacturing.
The Mexican government’s Plan México encourages the development of advanced manufacturing and local production. By gradually increasing the EV3’s local content, Kia supports these efforts and helps position Mexico as a central hub for electric vehicle development. This move also aligns with the country’s broader goals to strengthen its supply chain and reduce reliance on imports.
The investment also takes place amid ongoing discussions about the future of the USMCA trade agreement. The U.S. has proposed more stringent requirements for North American automotive production, while Mexico continues to focus on attracting high-tech manufacturing and emerging industries. Kia’s commitment to localizing production and expanding infrastructure in Mexico shows the country’s increasing role in the global shift toward electric vehicles.
Despite geopolitical uncertainties and evolving trade policies, Mexico is proving to be a reliable destination for automotive investment. Kia’s presence reinforces the country’s growing status as a regional leader in electric vehicle production, offering a strategic advantage for companies seeking to build and sell electric vehicles in North and South America.
Kia has not disclosed which specific variants of the EV3 will be built in Mexico. In Europe, the EV3 is available with 58.3 kWh and 81.4 kWh battery options, capable of reaching up to 600 km (373 miles) of driving range under the WLTP standard. The compact electric SUV features a 150 kW front-mounted motor and a 400-volt electrical system, but details on the exact configurations for the Mexican-market models will be released later.
The start of EV3 production in Mexico marks a major step forward for Kia’s electrification strategy in North America. By integrating local manufacturing, expanding charging infrastructure, launching sustainability projects, and creating new jobs, the company is not only strengthening its position in the region but also supporting broader efforts to promote electric vehicle adoption across Latin America.
With the Pesquería plant set to produce the EV3 alongside ongoing efforts to enhance local content and reduce environmental impact, Kia is demonstrating a long-term commitment to Mexico. This investment also underscores the region’s growing importance in the global electric vehicle market, offering a strategic location for companies looking to expand their presence in North and South America.