The Nikkei reports that Japan-based motor maker Nidec is planning to invest an estimated ¥100 billion (US$715 million) to build an e-axle plant in Mexico.

The company is currently producing e-axles in China and Europe but will start making them in North America as well ahead of an expected surge in demand.

The company plans to be capable of building an annual 7 million e-axles by March 2026. Nidec has unveiled seven locations that combined would produce 5.7 million e-axles. The planned Mexico plant would be responsible for delivering part of the remaining 1.3 million units.

Five of the seven locations are in China, and the other two are in Europe. In China, Nidec-made e-axles go into EVs produced by Guangzhou Automobile Group and into high-end Zeekr EVs made by Geely Automobile. In France, a plant Nidec runs jointly with Stellantis began operating earlier this year. Nidec also jointly runs a plant with the Guangzhou Automobile Group.

Competition for e-axle market share is intensifying, the Nikkei report noted. Aisin has developed a family of second-generation e-axles and plans to release them for compact and other EVs in 2025. Hitachi Astemo has won an order to supply e-axles for Honda Motor EVs that the automaker plans to begin marketing globally in 2026. Outside Japan, Robert Bosch of Germany and Magna International of Canada are stepping up their e-axle businesses.