In 2026, Kia announced a major upgrade to its North American electric vehicle strategy with a US$649 million investment for local production of the compact electric SUV EV3 in Mexico. The comprehensive project covers charging infrastructure, renewable energy, water recycling and job creation, further boosting Mexico’s influence in the global EV supply chain.

Kia EV3 production moves to Mexico

Instead of building new facilities, Kia upgrades its existing assembly line in Pesquería, Nuevo León to launch EV3 production starting August 4, 2026, making Mexico the world’s second EV3 manufacturing hub after South Korea. This flexible strategy helps

Milestone local BEV production supports regional export growth

The EV3 marks Kia’s first battery-electric vehicle manufactured and sold in Mexico, representing a key milestone in the brand’s North American electrification journey. Most locally produced units will serve the domestic market, while additional vehicles will be exported to other Latin American regions to expand Kia’s regional EV footprint.

Supporting Plan México through greater local content

The Mexico-built EV3 will launch with approximately 27% local content, with Kia planning to raise the figure gradually. Core components such as battery packs will be imported from Asia initially, while full vehicle assembly takes place locally. The growing local manufacturing value aligns with Plan México, which focuses on attracting advanced manufacturing, cutting imports and strengthening national automotive supply chains.

Charging infrastructure becomes core part of the investment

Recognizing that EV popularization relies on complete supporting facilities, Kia includes nationwide charging network construction in its investment package. The project covers residential charging solutions, public charging stations in urban areas and major highways, dedicated EV customer support, and mobile vehicle rescue charging units, greatly improving Mexico’s overall electric vehicle usage environment.

Renewable energy and water recycling projects empower green manufacturing

Part of the US$649 million investment targets eco-friendly manufacturing upgrades to reduce environmental impact. Kia will build a 2 MW on-site solar system, set to expand to 8 MW by 2030, capable of powering over 4,000 local households annually. A new wastewater treatment plant will process 1,050 cubic meters of industrial water per day and recycle 70% of factory water, easing water shortage pressure in drought-prone Nuevo León.

Mexico strengthens its position as an EV manufacturing hub

Amid uncertain geopolitics and ongoing USMCA negotiations, Mexico continues to attract global automotive investment. More than 1,180 industrial projects worth $404 billion are under development nationwide. As one of Mexico’s key investment partners, South Korea has over 2,000 local enterprises. Kia’s new project further consolidates Mexico’s status as a leading regional EV manufacturing hub.

Outlook for Kia’s North American electrification layout

Kia has not confirmed specific variants for Mexican-built EV3 models. The global version offers 58.3 kWh and 81.4 kWh battery options with a maximum range of 600 km, a 150 kW front motor and a 400-volt electrical architecture. Local specifications will be announced later. The EV3 production launch in early August 2026 marks Kia’s major commitment to Mexico’s booming EV industry and drives regional electrification across Latin America.