Kia eyeing $1 billion EV expansion in Mexico, says Nuevo Leon Governor

Samuel Garcia, governor of the northeast state of Nuevo Leon, is in Kia's EV9 Tuesday. [SCREEN CAPTURE]

Kia may invest $1 billion to expand its electric vehicle (EV) plant in northern Mexico.

"Kia once again bets on Nuevo Leon with an investment to expand its plant and produce two Kia car models," Samuel Garcia, governor of the northeast state of Nuevo Leon, wrote in his Twitter earlier in the day.

Garcia visited Seoul Tuesday for an international forum seeking cooperation between Korea and Latin America.

He originally said an estimated investment could reach around $1 billion but later deleted the part from the post.

Though Garcia did not elaborate on the details, such as what models will be manufactured in a new plant, he uploaded a photo of Kia's EV9 SUV.

Kia said it is considering the expansion with a mid-to long-term perspective, but that nothing has been fixed yet.

In 2016, Kia opened a 3 million-square-foot plant in Pesqueria, near Monterrey, Nuevo Leon, which also houses education and testing centers. The plant is believed to produce two models — the K3 sedan and the subcompact Pride — and manufacture 400,000 units a year.

A new EV plant, which is expected to be built near the existing facility, will allow Kia to become eligible for federal subsidies under the Inflation Reduction Act (IRA), which gives up to $7,500 in tax credits to buyers of EVs assembled in the United States, Mexico and Canada.

Hyundai Motor and Kia aim to sell around 2 million and 1.6 million all-electric vehicles, respectively, by that year.

BY YONHAP, SARAH CHEA [chea.sarah@joongang.co.kr]