September 21, 2023: Leoch’s new battery assembly plant in Mexico will be operational by the end of this year, owner and chairman Dong Li has told Batteries International.
The Singapore-headquartered company said in March that it had selected the country because of its unique geographical location and “export policy advantages” for the region — such as the USMCA free trade agreement (formerly NAFTA) between the US, Canada and Mexico.
Dong Li (pictured) revealed to Batteries International on September 18 that the new plant will be in Monterrey, in northeastern Mexico.
He said Leoch is not receiving government incentives for the project.
Meanwhile, in its interim half-year results for the period up to June 30, published on September 18, Leoch said the group remains confident in future demand for its lead batteries, given that start-stop batteries continue to be an “indispensable component” of most EVs in addition to other motor vehicles.
But Leoch’s flagship factory in the eastern Chinese province of Anhui will focus on the production and R&D of lithium batteries and plans to gradually ramp up manufacturing capacity, the report said.
Leoch’s overall revenue for the first half of this year amounted to Rmb6 billion ($823 million), dipping 2.7% from Rmb 6.1 billion in the corresponding period last year.
The group cited sluggish economic activities in Americas and Europe.
However, revenue from the group’s overall batteries increased 1.9% to Rmb5 billion compared to the year-ago period.
Leoch said its batteries business was boosted in part by sales in China, where post-pandemic tourism and “travel-hungry Chinese” were key drivers in after-market battery demand.