Leoch plans to build a new manufacturing plant in Mexico to further enhance its market presence in the Americas.

As said by Leoch chairman Dong Li, Mexico has been chosen 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. The decision followed careful studies of the market over the past year and the establishment of Leoch Iberia after purchase of Madrid-based distribution business Meibat, in May 2021.

The Mexico announcement came after the astonishing profit growth results of Leoch for the year ended December 31, 2022 amounted to 67 million USD — an increase of nearly 180% over the previous year. Overall revenue increased to 1.9 billion from 1.75 billion USD previously resulted from sales of batteries and related items. Revenue from sales of lithium batteries have also played an important role and could become a major growth driver in future.

Combined battery sales in overseas markets were up over the previous year by nearly 26% and nearly 2% in mainland China. In terms of geographic distribution, the Americas sales increased by the largest, totalling 325 million USD (previously $223 million) — underlining why the group sees a need for a Mexico plant in addition to its facilities in the US.