Taiwanese automotive components manufacturer Hota Industrial Manufacturing plans to build a US factory to boost presence in the growing North American electric vehicle (EV) supply chain.
The company, which produces drivetrain components such as driveshafts, axles, gears and differentials for internal combustion engine (ICE) vehicles and EVs, announced it would build its first factory outside Asia in the Santa Teresa Borderplex Industrial Park in New Mexico.
Hota supplies components to a large number of vehicle manufacturers, including Tesla plus other US and European automakers.
Construction of the US$99m plant was scheduled to begin early next year with completion in Q2 2025. It was expected to help local EV manufacturing customers qualify for tax incentives under the US Inflation Reduction Act (IRA).
Chairman David Shen said in a statement: “Our successful collaboration with renowned EV makers has positioned us as a long-term [supplier] for companies in the US.”
New Mexico governor Michelle Lujan Grisham said her department helped locate the 12 hectare plant site and provided US$3m in “state job investment” incentives.
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Additional state incentives would be available including employee training and manufacturing tax credits.