Mexico Electric Vehicle Battery Market Size and Forecast by Propulsion Type, Battery Type, and Vehicle Type: 2019-2033

Mexico Electric Vehicle Battery Market Growth and Performance

• The Mexico EV battery market is anticipated to witness robust growth in the coming years, with a projected CAGR of XX% from 2025 to 2033, reaching a market value of US$ XX million by 2033.
• Within the various segments of the EV battery market, the XX segment is expected to emerge as the largest segment in Mexico.

Mexico Electric Vehicle Battery Market Outlook

Mexico electric vehicle battery market is experiencing significant growth, driven by increasing adoption of EVs and strategic investments. According to the National Institute of Statistics and Geography (INEGI), from January to November 2024, 108,943 hybrid, plug-in hybrid, and fully electric cars were sold in Mexico, marking a 70.2% increase compared to the same period in 2023. This surge reflects a growing consumer shift towards cleaner transportation options. The Mexican government's proactive stance, including considerations for tax incentives to attract foreign companies in sectors like EVs and batteries, further bolsters this growth trajectory. Such initiatives aim to position Mexico as a competitive player in the global EV supply chain, leveraging its strategic location and trade agreements. However, challenges remain, including the need for robust charging infrastructure and regulatory frameworks to support this rapid expansion. Addressing these issues will be crucial in sustaining the momentum and ensuring long-term success in the EV battery sector.

Mexico Electric Vehicle Battery Market Drivers

Several factors are propelling the growth of Mexico's EV battery market. The country's strategic location, coupled with trade agreements like the USMCA, makes it an attractive destination for automakers aiming to serve the North American market. The surge in EV and plug-in hybrid vehicle (PHEV) sales, which reached 69,713 units in 2024—a remarkable 83.8% increase from 2023—highlights growing domestic demand. Notably, plug-in hybrid sales saw a 154.7% rise, indicating consumer interest in transitional technologies. Additionally, the expansion of charging infrastructure, with public and private charging points increasing by 4.98% in Q4 2024, supports this upward trend. Government initiatives, including potential tax incentives for foreign companies in the EV sector, aim to attract further investment and enhance local production capabilities. These combined efforts underscore Mexico's commitment to becoming a central hub in the EV battery supply chain.

Mexico Electric Vehicle Battery Industry Trends

The EV battery industry in Mexico is witnessing several emerging trends. One notable development is the entry of international players into the Mexican market. Spanish battery manufacturer Endurance Motive announced plans to commence lithium battery production in Puebla by March 2024, aiming to serve both domestic and U.S. clients. This move signifies a growing interest in localizing battery production to meet regional demand. Additionally, the Mexican government is exploring tax incentives to attract foreign companies in sectors like EVs and batteries, further encouraging industry growth. However, challenges persist, including energy supply constraints and the need for a comprehensive regulatory framework to support EV infrastructure development. Addressing these issues is essential to capitalize on the industry's momentum and ensure sustainable growth.

Mexico Electric Vehicle Battery Industry Development

Significant investments are reshaping Mexico's EV battery market landscape. In February 2025, BMW announced an $800 million investment to expand its operations in San Luis Potosí, aiming to prepare the facility for EV manufacturing by 2027. This expansion includes the commencement of high-voltage battery pack production, positioning BMW as the first lithium battery manufacturer in Mexico. Similarly, Tesla revealed plans in March 2023 to establish a gigafactory in Nuevo León, projected to be the largest EV plant globally, with an investment exceeding $5 billion. Marelli also secured a global contract in June 2024 to supply Battery Thermal Plates for future BEVs, with production set to take place in Mexico among other locations. Additionally, General Motors' broader strategy to expand its EV production footprint across North America includes significant investments in its Mexican operations. These developments underscore Mexico's growing prominence in the EV manufacturing sector, particularly in producing essential components for electric vehicles.

Mexico Electric Vehicle Battery Market Scope