Stellantis is considering revamping a plant in Mexico to make hybrid and electric vehicles as it revamps its product line to meet surging demand for electric vehicles,media reported.

According to sources, Stellantis is considering revamping its plant in Saltillo, Coahuila, one of the industrial centers in northern Mexico, about 100 meters from the country’s border with the U.S. state of Texas. 200 miles (about 320 kilometers).

Stellantis is also evaluating the possibility of investing in the state of Mexico, where it also has a factory in Toluca, one of the people said. In addition, the company has the potential to invest in Sonora. The investment plan has not yet been finalized and could still change, the sources said.

Image credit: Stellantis

"We regularly invest in factories around the world to upgrade processes, vehicle production, or accommodate electrification, which was our EV Day a year ago," Stellantis spokesman Shawn Morgan said in an email. Part of the total $35 billion in electrification and software investments announced during (EV Day).”

One concern for Stellantis is ensuring its plants have enough power, according to two people familiar with the company's plans. Mexican President Andres Manuel Lopez Obrador is currently prioritizing the operation of the national electricity supplier at the expense of private and foreign companies. sparked strong dissatisfaction. The U.S. and Canadian governments last month demanded formal talks with the Mexican government, saying its current policy violates a free trade agreement signed between the three countries in 2020.

Mexican Finance Minister Ramirez de la O said in a tweet that Stellantis' investment in Mexico would create jobs, adding that Mexico could help the company ensure adequate energy supplies and help it achieve Efficient transition to clean energy.

Stellantis is currently building the Jeep Compass crossover at its Toluca plant in Mexico, after analysts said the company plans to build an electrified version of the Compass at the plant in 2024. The Stellantis Saltillo plant makes the Ram 1500 and heavy-duty pickups, as well as the Ram ProMaster van, which CEO Carlos Tavares has made as a key product to meet demand for electric vans from e-commerce companies such as Amazon.

Mexico has long been the world's major automotive production center, and the country's cars are mainly used to meet the needs of foreign markets. Previously, a number of large car companies and parts suppliers have announced new plans to invest in Mexico. GM is currently producing the Chevrolet Blazer and Equinox in the country, and Ford is ramping up production of the Mustang Mach-E in the country.

CATL, the world’s largest electric vehicle battery maker, is also considering building plants in at least two locations in northern Mexico, including Saltillo. The batteries produced in the Mexican plant will be used to supply Tesla and Ford. .

Mexican state governments have been offering incentives to attract investment, and Tesla has even secured an exclusive border lane to Texas in the state, allowing its suppliers in Nuevo Leon, Mexico, to reduce wait times.