Link EV will invest 265 million dollars at a plant in Puebla

LINK TO ASSEMBLE LAST MILE AND URBAN TRANSIT ELECTRIC VEHICLES

Link EV will invest 265 million dollars at a plant in Puebla

With an investment of 265 million dollars, US firm Link EV, in partnership with Chinese automaker EV Dynamics and Spanish QEV Technologies, will set up the first plant for last mile and urban transit electric vehicles in Mexico.

By Lilia Gonzalez; January 25, 2022

With an investment of 265 million dollars, US firm Link EV, in partnership with the Chinese automaker EV Dynamics and Spanish QEV Technologies, specialized in electromobility, will set up in Mexico the first plant of last-mile passenger trucks and urban transit to immediately service the local and Latin American markets, as well as North America.

According to Sergio de la Vega, CEO of Link EV, a subsidiary of Citizens Resources (energy transition company) the company’s bet is to start production in Puebla at the end of this year, "early 2023 at the latest, as the demand for electric vehicles is high” in Latin America, as a result of the replacement of combustion units for sustainable energy.

The Latin American market was served with imports from Hong Kong, Asia where the plant for these commercial vehicles is located, but given the high cost of sea freight from the East, Mexico was chosen as the maker for the Americas via Link EV, said de la Vega in an interview.

The factory will be located in Puebla, close to the Volkswagen plants, to take advantage of the local supply chain and procurement, which will allow Mexico to assemble 4,000 electric commercial and passenger vehicles.

“Our plan is to build a first plant to produce the models for which we are finding greater demand in the market. The idea is to do it relatively quickly, because the demand is out there. The need to tend to these markets is not a three-to-five year-project, but a plan for this or the next year. We have designed some manufacturing processes that allow us to begin operating late this year, something that will depend on global supply chains,” he said.

The Governor of Puebla, Miguel Barbosa, confirmed the Link EV Electric Vehicles investment, which will create 400 direct and 1,200 indirect jobs throughout the project.

Link EV Electric Vehicles is part of Citizens Resources, a US company based in Boston, Massachusetts, with a 40-year track record on electric mobility solutions: vehicles, service and electric charging network.

Link to the story: https://www.eleconomista.com.mx/empresas/Link-EV-anuncia-inversion-de-265-millones-de-dolares-para-construir-planta-de-autos-electricos-en-Puebla-20220125-0051.html


Citizens will invest 250 million dollars in an electric vehicle plant in Puebla

Citizens will invest 250 million dollars in an electric vehicle plant in Puebla

January 25, 2022  

Ivet Rodríguez / @Ivet2R

The compound will generate 400 direct jobs and will have the capacity to manufacture up to 1,400 units per year.

US energy solutions company Citizens will invest 250 million dollars to build a plant for last-mile electric vehicles in Puebla. The compound will host four assembly lines with the capacity to manufacture 1,400 units per year. In its first stage, it will create 400 direct jobs and around 1,600 indirect jobs.

The plant will start making two models: a 6.5 meter long van with a capacity for 24 passengers and another cargo vehicle, similar in size. Both will be marketed in Mexico under the Link brand name.

Sergio de la Vega, CEO of the firm in Mexico, explained in an interview that the units are designed for urban transfers, that is, to travel short distances in traffic conditions that enable a consistent regeneration of energy. Their autonomy will range between 200 and 300 kilometers per charge depending on the needs of customers.

The vehicles were developed by Chinese company EV Dynamics and their mechanics will adapt to the particular features of each market. Initially, the units made in Puebla will cover the local demand and later the export demand.

“The idea is to enter the nearby markets in the medium term, especially the northern part of South America, such as Ecuador and Colombia, as well as the Caribbean. Once we are consolidated in the region, we plan to enter the North American market,” said de la Vega, who pointed out that this last phase of the project will require a capacity expansion. "The United States and Canada are markets that, due to their size, demand very large volumes."

The new plant is the second in the state dedicated to manufacturing last-mile vehicles. The other belongs to the Mexican brand Zacua, which last year turned towards delivery vehicles, amidst the boom in the delivery of goods.

Local content

De la Vega explained that one of the reasons that prompted the company to set up shop in Puebla is the state's supplier base, since the plan is to have vehicles with a high content of local components.

“An important part of the brakes and suspension is of local content. The chassis and bodywork are also made in Mexico…The project will go through different phases and we plan to only import the powertrain or the battery, the electric motor and the control systems from China in the future,” he added.

Link has already had meetings with potential clients in Mexico. “We did not expect such an immediate interest in orders. I would have thought that this transition would take more time and effort, but we have found ourselves with a market that is more open to new technologies”, de la Vega concluded.

Link to the story: Citizens invertirá 250 mdd en una planta de vehículos eléctricos en Puebla (expansion.mx)


Link EV to invest 5 bn pesos to make electric cars in Puebla

Link EV to invest 5 bn pesos to make electric cars in Puebla

By Fernanda Celis


Link EV, a mobility subsidiary of energy company Citizens Resources, announced its plan to build a plant in the state of Puebla to make electric passenger vans and cargo trucks, a plan that will require an investment of over five billion pesos (242 million dollars).

The compound will be built starting in July and the expectation is that in less than a year it will produce 1,400 cars for the local market and exports, Sergio de la Vega, CEO of Citizens Companies, said in an interview.

“Mexico’s automotive industry is very strong. It is one of the largest exporters in the world, with robust supply chains and valuable and efficient human capital,” de la Vega said.

This is the first vehicle assembly plant that Citizens Resources, a company based in Boston, will set up in the Americas.

The project will consist of three phases: the first includes the installation of four lines that will produce one vehicle per day to reach 1,400 units per year, while the second and third, in three and five years, respectively, will enable building up to 10,000 vehicles per year.

In its first stage, the project will create 400 direct jobs and 1,250 indirect jobs, with a recruitment and training program among young university and tech college graduates from the San José Chiapa region, a town where the German company Audi already makes luxury cars.

The manufacture will be aimed at both the local market and the Latin American market, in countries such as Brazil and Chile, and in Central America. Later, the company could scale production to reach markets in the northern United States and Canada.

There are several companies in Mexico with vehicle production lines that are smaller when compared to the large investments from automakers such as Toyota, Volkswagen or General Motors.

Giant Motors Latin America, for example, assembles vehicles in Ciudad Sahagun, in Hidalgo state. The company whose largest shareholder is businessman Carlos Slim does so in alliance with the Chinese manufacturer JAC Motors.

As for electric vehicles for the productive sector, the main bet is from bread maker giant Bimbo, which through its Moldex brand manufactures delivery vans.

According to de la Vega, the changes in the electrical sector promoted by President Andrés Manuel López Obrador are not a hurdle for the company.

The day before, the Mexican Association of the Automotive Industry (AMIA), which is comprised by car assemblers in Mexico, showed their opposition to the reforms, among other things because the energy generated by the Federal Electricity Commission — the utility company that the government intends to reinforce with the reform — is usually more expensive than the energy generated by private companies from ecological processes. Another concern is that with these changes the assemblers will be unable to comply with international commitments, such as the USMCA trade agreement and the Paris Agreement.

“Actually, from the productive point of view, these policies are not an impediment; they may probably have a different effect, but not at the productive level. . . Electric mobility is coming to the world to stay. There are very important vehicle producers worldwide that have already expressed their intend to stop producing internal combustion vehicles and focus solely on electric vehicles. This is the trend beyond the policies of the countries at energy levels,” said de la Vega.

Bosch, a Germany-based provider of technology and services in the automotive and industrial sector, is also keeping an eye on the proposed electrical reform in Mexico, given its operations and interest in the electric vehicle segment.

“For us, energy policy is very important because of the automotive industry. That is why we are closely watching the electrical reform, and we believe that in the future, it is very important for Mexico to adapt to green energy because without it, electric cars have no meaning,” said Alexander Firsching, vice president of the Bosch’s San Luis Potosí plant, at a conference in early December 2021.

In turn, Oscar Ocampo, Energy coordinator at the Mexican Institute for Competitiveness (IMCO), a non-partisan research center, pointed out in October last year that Mexico has trade and climate commitments established in agreements such as the USMCA with the United States and Canada, as well as in the Trans-Pacific Partnership Agreement.

In Puebla, the automotive sector represents 43.4% of the country’s GDP and creates more than 64,000 jobs through 362 economic units.

Link to the story: Link EV invertirá 5 mil mdp para producir autos eléctricos en Puebla - noticias de negocios (sentidocomun.com.mx)


Electromobility will bring investment to Mexico: Link EV

The manufacturer of electric commercial vehicles announced an investment of 265 million dollars to build an assembly plant in Puebla.

TZUARA DE LUNA

11.02.2022 

 

With the automotive sector shifting towards electrification, this scenario is for Link EV an opportunity to promote greater investments in Mexico, as the industry is developing.

“From an economic point of view, this transition is going to bring a lot of opportunities for Mexico, because the country is going to have to develop infrastructure for electric power, and set up new factories to assemble electric vehicles,” said Sergio de la Vega, CEO of the firm.

These investments will come with the creation of jobs. Once, the shift towards electrification in the automotive sector was conceived mostly as a measure in favor of the environment; it is today a business opportunity too.

"This is going to create a very significant number of jobs. I don't have a real estimate of how many, as it is a new industry, a new wealth and a new source of jobs...The first incentive was environmental, but today it is economic," he said in an interview with MILENIO.

Last month, the manufacturer of electric commercial vehicles announced an investment of 265 million dollars to build an assembly plant in Puebla, which is expected to begin operating early in 2023.

De la Vega highlighted that Mexico has a window of opportunity for investment due to its robust value chain focused on the automotive sector, as well as its strategic geographic position.

In addition, and regarding the bottlenecks in supply chains worldwide, together with the shortage of semiconductors and their impact on the automotive production, he believes that Mexico could also find an opportunity here.

“This is business. And if it is not, we must incentivize it. Within a year the number of charging units in Mexico, whether in shopping malls or service stations, will grow by at least 100 %, and up to 500 %... Capital seeks more capital and to create more wealth, which will be generated there,” he added.

According to the latest data from the National Institute of Statistics (Inegi), the sale of hybrid and electric vehicles in Mexico totaled 3,775 units in November, which compared to the same month a year earlier, results in an increase of 57.2 %.

From January to November, the aggregated amount totals 42,969 units sold, which means a year-on-year increase of 105.8 %.

Link to the story: 

https://www.milenio.com/negocios/electromovilidad-traera-inversion-mexico-link-ev


Technological advances will make sustainable mobility cheaper: Citizens Resources

The growing energy production in 2025-2030 will be led by wind and solar power generation, according to Sergio de la Vega, CEO of Citizens Resources, considered it.

By Patricia Ortega

February 12, 2022

The growing energy production in 2025-2030 will be led by wind and solar power generation, according to Sergio de la Vega, CEO of Citizens Resources. “Solar and wind power generation combined with batteries will exceed the economics of a modern combined cycle natural gas plant, and even combined cycle natural gas generating plants are expected to become obsolete.”

During the talk "Energy transition and sustainable mobility" held at the Hermanos Rodríguez Autodrome at the Formula E, the CEO said that there is a series of studies that show that in 2015- 2020, the cost of energy generation based on of coal, fuel oil and open-cycle natural gas is higher than that of most renewable technologies, and insisted that "generating plants based on these fossil fuels are becoming obsolete."

Even the Intergovernmental Panel on Climate Change (IPCC) estimated an average efficiency of 32% in the global use of fossil fuels. This calculation is based on measuring process and transport losses and then adjusting for mechanical efficiency.

Sergio de la Vega said that although the social support of energy transition is decarbonization, “the focus is on electrification both in electric vehicles, electric heating and air conditioning, electric stoves, synthetic gas and chemical inputs using electricity, electric industrial processes and grid balance based on demand.”

Electromobility

The CEO believes that there is a need to take into account that the transition of the automotive industry towards electromobility poses multiple challenges, which require long time cycles and a collaborative effort in several fields, which goes beyond borders, but which will soon be driven in the long run by market forces and social demand.

He explained that the energy transition will lead to two opposing economic phenomena. “While on the renewable energy side there will be a deflationary virtuous circle, as both photovoltaic and wind power generation panels and other renewable energies tend to become cheaper, increase their efficiency and be more environmentally sustainable, on the fossil fuels side, the process will be reversed, that is, inflationary, as hydrocarbons will be increasingly scarce, access will be increasingly difficult, and their use will be increasingly restricted and punished.”

The CEO of Citizens Resources, a firm that owns the subsidiary brand Link EV Electric Vehicles, mentioned that "although at first the transition to electromobility must contemplate financial, urban, technological and regulatory measures, among many other aspects, to reach the goals to lower emissions, in the long term we are seeing an alignment of incentives that will make market forces themselves the ones driving the transition, as we can already see in the rechanneling of large flows of investment capital that are coming out of the fossil energy industry and into renewable energies.”

Regarding electromobility, he explained that investments in electric motor transport should be thought of in terms of total capital cost; that is, the entire life cycle of the vehicle and the charging network must be analyzed, contemplating that although today the short-term purchase price is a little higher than its internal combustion equivalents, by incorporating the operating costs in the long term, electric vehicles are already more convenient in economic terms, especially in cargo or passenger vehicles of intensive use and last mile, as they require less maintenance than internal combustion vehicles and their technology is advancing rapidly.

Sergio de la Vega said we must understand the concept of energy efficiency itself. For instance, today less than 30% of the energy in fossil fuels is turned into electricity. This gives us an idea of the efforts in terms of electricity generation that humankind will have available to be able to replace the use of fossil fuels in automotives, in a planet where the International Energy Agency has estimated that the energy demand will increase by 30% towards 2040, equal to adding another China and India together to the global demand.

“Electromobility is already going beyond borders, and proof of that is this week’s visit of John Kerry to Mexico in order to attend the conformation of the Mexico-US task force for the electrification of transportation, an initiative that had begun at the North America Leaders’ Summit, held in November 2021.”

Link to the story: Los avances tecnológicos abaratarán la movilidad sustentable: Citizens Resources | El Economista


Expected acceleration in service stations

By Mario Alavez – February 15, 2022,

In Mexico, service stations are scarce, but the trends towards electromobility will lead to a growth of at least 100% in electro chargers in Mexico.

According to Sergio de la Vega, CEO of Citizens Resources, a proof of this model is Tesla.

“First, Tesla set up charging stations and then developed the vehicles. If you do this the other way around, people will not feel encouraged, as they are concerned about the lack of charging stations. In this case, the industry understands this and is willing to invest,” said the CEO.

The electric charging stations will be a long-term business as we must wait for “the eggs to be hatched” so that the return is considerable.

Sergio de la Vega said that his forecast is very conservative due to the low level of benchmarking in the market.

“I believe the growth will be much more than 100%. We are part of a very new industry and the big opportunity for capital investors is to participate in this process, to lead an industry from early stages to consolidation, although the development of this market may take years,” he said. 

However, the transition of the automotive sector to the exclusive manufacturing of electric vehicles may be decisive to accelerate this process.

“Some of the CEOs of top companies worldwide in the vehicle manufacturing industry have already made 10 – 15 year-commitments to stop manufacturing internal combustion vehicles to start manufacturing electric vehicles. The industry is already on that road,” according to Sergio de la Vega.

Assembly plant to be set up in Puebla

De la Vega said that Link EV, a company specializing in developing electric buses, will build an assembly plant in Puebla, with the capacity to assemble 1,400 vehicles each year in four production lines, to export around 30 % of the total.

“Total production is not enough to supply the Mexican market; but we are going to try to export 30% of the production, as we have to begin positioning in other countries and we have not been able to meet the production targets in Asia, as there is not enough transportation and supply chains are in trouble,” said the CEO.

However, the CEO said that the bottleneck of the supply of semiconductors worldwide, which has affected the automotive chain since mid-2021, will not impact the development of the Link EV plant, which will require 250 million dollars in investment and will create 400 direct jobs and 1,500 indirect jobs.

“We are less dependent on chips, as we are a newer industry. The traditional automotive industry is very consolidated and with very developed supply chains and when these are disrupted, the problems grow. We depend on less mature chains and we are still experiencing the problem, but not in the traditional automotive industry,” he said.

Link to the story: Energía A Debate (energiaadebate.com)


LINK EV: Electromobility is an Irreversible Phenomenon

PRESS RELEASE

Hermanos Rodríguez Autodrome, Mexico City, February 11, 2022.—Today, LINK EV Electric Vehicles presented "Energy transition and sustainable mobility", a talk by Sergio de la Vega, CEO, Citizens Resources, to analyze some of the most outstanding trends of this innovative transformation stage in the automobile industry.

Faced with the challenges of climate change, many in governments, industry, academia, the scientific community and civil society have proposed a transition towards the use of clean energy in all sectors as a solution, where electric mobility has a leading role.

However, the CEO of Citizens Resources pointed out the need to take into account that the transition of the automotive industry towards electromobility poses multiple challenges to solve, all of which require long time cycles and a collaborative effort in several sectors. This transition transcends borders, but will soon be driven in the long term by market forces and societal demands.

Sergio de la Vega explained that the energy transition will lead to two opposing economic phenomena. On the renewable energy side there will be a deflationary virtuous circle, as both photovoltaic and wind power generation panels and other renewable energies tend to become cheaper, increase their efficiency and be more environmentally sustainable. On the fossil fuel side, the process will be reversed, or inflationary, as hydrocarbons will become increasingly scarce, access will be increasingly difficult, and their use will be increasingly restricted and sanctioned.

De la Vega said that at first the transition to electromobility must contemplate financial, urban, technological and regulatory measures, among many other aspects, in order to meet the goal of less emissions. But in the long term an alignment of incentives will make the market forces themselves lead the transition, as we can already see in the rechanneling of large flows of investment capital that are leaving the fossil energy industry and entering renewable energies.

Sergio de la Vega urged for a better understanding of decisions regarding the electrification of transport, as these cannot be made based on concepts in terms of technology or sustainability that perhaps applied to the level of development or knowledge existing from decades ago, such as estimates of requirements of specific minerals such as lithium or cobalt for the production of batteries or photovoltaic cells, which today no longer apply.

In terms of electromobility, de la Vega also said that investments in electric motor transportation should be planned in terms of the total cost of capital; that is, analyzing the entire life cycle of the vehicle and the charging network. Although today the short-term purchase price of an electric vehicle is a little higher than its internal combustion equivalents, by incorporating the operating costs in the long term, electric vehicles are already more convenient in economic terms. This is especially true in intensive-use and last-mile cargo or passenger vehicles, as they require less maintenance than internal combustion vehicles and their technology is advancing rapidly.

Sergio de la Vega highlighted an understanding from the very concept of energy efficiency. For instance, currently less than 30% of the energy in fossil fuels is turned into electricity. This gives us an idea of ​​the effort in terms of electricity generation that humankind will have to make in order to replace the use of fossil fuels in automobiles, in a planet where the International Energy Agency (IEA) has estimated that the energy demand will increase by 30% by 2040, the equivalent to adding another China and another India to the global demand.

The truth is that the issue of electromobility is already going beyond borders, and proof of it is this week’s visit of John Kerry to Mexico for the formation of the Mexico-United States Task Force for the Electrification of Transport, an initiative that began during the North American Leaders Summit held in November 2021.

Link EV Electric Vehicles is part of Citizens Resources, a US company with over 40 years of footprint in international energy markets. In 2017 Citizens adopted a change of vision and a business plan to reduce its oil and gas operations to focus on clean energy, developing new business lines focused on energy transition.

LINK believes the adoption of electric commercial vehicles and fast charging stations with Wireless Charging technology is the first step towards electric mobility.

 

About LINK:

LINK EV is a subsidiary brand of Citizens Resources, based in Boston, Massachusetts. It is a US company with an over 40-year track record in international energy markets. Citizens currently operates distributed generation facilities, energy efficiency solutions, solutions for gas combustion in burners, green mining, electric mobility and smart cities. With a team of more than 50 professionals with extensive experience in energy sectors, based in the United States, Mexico and Europe, Citizens is committed to meeting the goal of leading the transition towards a more efficient use of energy.


LINK EV Electric Vehicles Will Come to Puebla

PRESS RELEASE

Puebla, January 25, 2022. — Today, with the attendance of state governor Luis Miguel Barbosa, the LINK EV Electric Vehicles announced its plans to set up an assembly plant in Puebla with an estimated investment of over 5.3 billion pesos (265 million dollars), generating 400 direct jobs and 1,250 indirect jobs in five years.

Link EV Electric Vehicles is part of Citizens Resources, a US firm with over 40 years of experience in international energy markets. In 2017, Citizens adopted a change of vision and a business plan to reduce its oil- and gas- based operations in order to focus on green energy, developing new business lines focused on energy transition.

As part of this new approach, the firm is committed to offering a range of efficient solutions for sustainable mobility, through the production and distribution of electric commercial vehicles to move people and goods within metropolitan areas, as well as the creation of a network of distributors and service.

In order to supply electric commercial vehicles, the company has entered partnerships with EVDynamics, based in Hong Kong, and QEV Tech, based in Barcelona. EVDynamics currently handles production, supply chain and technology from the Asian markets, while QEV contributes with technical services, technology development, approval support, logistics and design.

Together with its partners, Link plans to start manufacturing in the Americas and has opted for Puebla, a state with a robust automotive and auto parts industry, with sophisticated supply chains and skilled workforce. The plan also contemplates exporting to North, Central and South America.

LINK sees the adoption of electric commercial vehicles and fast charging stations with wireless charging technology as the first steps towards electric mobility.

Operations are expected to begin in the second half of 2022 with 4 production lines that will have a total nominal capacity of 1,200 units in a first stage in which 7-meter microbuses and 7.5-meter cargo and passenger vans will be manufactured, as well as 8.5-meter urban buses. Link already offers imported vehicles and cargo solutions in Mexico.

About LINK:

LINK EV is a subsidiary brand of Citizens Resources, based in Boston, Massachusetts. It is a U.S. company with a more than 40-year track record in international energy markets. Citizens currently operates distributed generation facilities, energy efficiency solutions, solutions for gas combustion in burners, green mining, electric mobility and smart cities. With a team of more than 50 professionals with extensive experience in energy sectors, based in the United States, Mexico and Europe, Citizens is committed to meeting the goal of leading the transition towards a more efficient use of energy.

https://citizenscompanies.com/