China’s Contemporary Amperex Technology Co. Ltd is considering at least two locations in Mexico for manufacturing plant to potentially supply Tesla and Ford.  

The battery manufacturer is considering Ciudad Juarez, in the state of Chihuahua, and Saltillo, in Coahuila, according to people familiar with the deliberations. Both are near the Texas border. The company is contemplating an investment of as much $5 billion in the project, said the people, who asked not to be identified discussing private information. 

Ciudad Juarez is particularly attractive as it’s close to the San Jeronimo-Santa Teresa port of entry into the US state of New Mexico. That would provide a route around the border crossings of Texas, which is the home of Tesla’s new factory but in recent months has taken measures that complicated shipping and entry into the US. 

Texas Governor Greg Abbott increased inspections of commercial vehicles in April as he wants to crack down on illegal drug trafficking and immigration 

It has been said that CATL is considering splitting investments across two locations, one in the US and one in Mexico. Although, the decision hasn’t been made about the size of the total investment. 

Backed by China’s strategic push into electric cars, CATL is riding a boom in demand for EVs as countries work to reduce carbon emissions and consumers embrace cleaner cars. The company, which completed an initial public offering in 2018, controls more than 30% of the global EV battery market.