Coahuila, a thriving state in Mexico, is quickly becoming a leader in the electric vehicle (EV) and automotive manufacturing industries. The region has recently attracted significant investments from global giants such as LG-Magna e-Powertrain, LG-Electronics, and International Inc. With the construction of their new plant in the “Santa María” Industrial Park, Coahuila is set to play a pivotal role in the future of electric cars.
The $100 million plant, a joint venture between LG Electronics and Magna International, is scheduled to begin operations in 2023. Located in the city of Ramos Arizpe, this 260,000-square-foot facility will produce inverters, motors, and on-board chargers to support production at General Motors factories. This investment is expected to create around 400 new jobs in the region.
Coahuila’s strategic location and strong automotive industry have contributed to its international sales of $13.5 billion in 2019. The United States remains its largest trading partner, accounting for 90.9% of its exports, followed by China, Brazil, and Germany. The automotive sector, which includes vehicle parts and accessories, automotive seats, and engine parts, has long been a critical contributor to Coahuila’s economy.
The state’s partnership with major automotive companies dates back to the 1980s when both GM and Chrysler established facilities in Ramos Arizpe. Coahuila has since attracted other prominent manufacturers like Siemens, Texas Instruments, Samsung Electronics, Eaton, Applied Materials, Emerson, Broadcom, ABB, Motorola Mobility, and National Instruments.
Yanfeng, a leading automotive supplier, recently announced a $17 million investment in its second plant in Santa María, Coahuila. The 210,000-square-foot facility is expected to generate 1,000 additional manufacturing jobs by 2023.
With the implementation of the United States-Mexico-Canada Agreement (USMCA) and its increased requirements for North American-generated content, Coahuila is well-positioned to benefit from the growing demand for electric vehicles and components. The state’s commitment to developing its automotive industry and attracting international investments has made it a vital player in shaping the future of sustainable transportation in Mexico and beyond.