Mexico and the United States plan to take advantage of the Biden administration’s massive investment in semiconductor production to push the integration of their supply chains and cooperate on expanding the production of electric vehicles through Mexico’s nationalized lithium industry, officials from both countries said Monday. Mexico preparing to meet the U.S. and European electric vehicle demand
Both efforts seek to eat into Asia’s advantage in semiconductors and batteries needed for electric vehicles and promote North American production.
They were among the main topics discussed within and on the sidelines of the two countries’ High-Level Economic Dialogue in Mexico’s capital.
“Major elements of the semiconductor supply chains are already well established in Mexico, with U.S. based companies like Intel and Skyworks conducting research and development, design, assembly and test manufacturing in parts of Mexico,” U.S. Secretary Antony Blinken said. Mexico looking to boost industry in the Chihuahua-New Mexico trade corridor
Blinken and U.S. Commerce Secretary Gina Raimundo had spoken earlier in the day with Mexico President Andrés Manuel López Obrador about the opportunities for Mexico to take advantage of recently passed U.S. legislation that would provide $28 billion in incentives for semiconductor production, $10 billion for new manufacturing of chips and $11 billion for research and development.
López Obrador, for his part, explained his plan to make the northern border state of Sonora a leader in lithium, electric vehicle and solar energy production, Mexico Foreign Affairs Secretary Marcelo Ebrard said.
Lithium is a key component of batteries for electric vehicles. The president said last month he had already discussed the idea with U.S. President Joe Biden.
Blinken said another piece of new U.S. legislation aims to incentivize the shift to electric vehicles and the production of the batteries they need in North America.
The dialogue, which was launched by then-Vice President Biden in 2013, resumed last year in Washington after stopping during the Trump administration.
Source: OEM
