Lithium Batteries up for Manufacturing in Mexico

Mexico stands in a possibly privileged situation to manufacture lithium batteries. It is majorly because of its proximity to the USA. However, in order to produce lithium batteries here, the country should offer required incentives to collect the needed investments. Also, Mexico should become a major demand point for electric cars. Automotive manufacturing Mexico has already been a great hit in the nation. Now, it is focusing on the future of lithium-ion batteries and their metals.

According to an analyst, as of now, no nation in the Latin America parts other than Brazil stands in the row in the supply of raw materials for the production of lithium based batteries for EVs. And, the top three positions are of China, Japan and South Korea, with Brazil standing at the 12^th position.

Other than Brazil, Chile and Argentina also have high deposits of major mineral products needed to produce the power source. And, seeing the need for lithium batteries in the coming time, the potential to produce lithium batteries stands tall.

A robust Latin America supply chain can catalyze the production of lithium batteries in Mexico

Latin America is significant at the lithium level and has a major role. You can see a high mining capacity in the area along with technical invention which is helpful to acquire raw materials for the manufacturing of the batteries.

However, along with the extraction of the metals needed for the manufacturing of the batteries, the production of lithium batteries in the Mexican region needs that the country becomes a hub of demand.

Manufacturing does pave the way for Mexico to be the center of demand but not fully! Another thing which Mexico should address is the experience and skill needed to produce materials and manufacture of batteries and EVs. Because of the recent advancements, Mexico will soon produce Electric vehicles.

The local government and federal administrations play a major role to attract foreign investment. Just like in Argentina, where the state governments have close eye on the production of lithium and its supply chain. Overall, the lithium market is in a competitive situation because of huge supply and floppy demand. It has made extraction and manufacturing unaffordable. And this is why a lot of mines have closed.

Automotive Manufacturing Companies

But in the year 2021-2022, there has been a real shortage of lithium. It is still being extracted in the USA and Canada from unconventional places at low costs. Along with it, these raw materials can easily be shipped to automotive manufacturing Mexico companies that are getting into the production of electric vehicles.

When asked about the recycling of the lithium batteries, experts claim that the materials used in the production of batteries are fully recyclable and that electric cars need high performance batteries and once they have lived their life in EVs, they can be revived for a second life in other stuff.

Nowadays, you don’t see recycling included in the global supply chain of lithium metals. This is because there are still not sufficient batteries that have ended their first life or the next one. However, once they reach that point, you can recycle that. According to analysts, by 2030, with regards to lithium batteries, 10 percent of the total market supply will rise from recycled material.

Skill sets needed by automotive manufacturing Mexico

Mexico has a lot of engineers in comparison to its neighbor, the USA. The skillset is likely to be of great value in supporting car manufacturers’ evolving needs on the manufacturing floor.

Other than tertiary education, Mexico has a great history of vocational training, when Mercedes Benz trained electronic technicians by partnering with Mexican vocational schools. Manufacturing companies can use CEFTA to customize technical training so that workers can meet the specific job requirement.

The electric vehicle race has begun and while Tesla comes packed with knowledge and technology, it won’t be alone in the commanding position for long. This is the time for OEMS to produce components to show their worth. The developing automotive industry needs to rise in invention and make the price fall. A manufacturing setup in Mexico is the best option to gain this edge. Find out more about it at American Industries.