A sweeping wave of foreign and domestic capital is flowing into the two largest manufacturing economies in Latin America. Mexico and Brazil are collectively attracting billions of dollars in new plant investments and acquisitions, with capacity expansions across automotive, aerospace, pharmaceutical, technology, and mining sectors. The deals announced and completed in recent months paint a picture of a region that has moved well beyond low-cost assembly into high-value, technology-intensive industrial production.
Mexico
Mexico's automotive sector continues to attract marquee investments, with Stellantis making a notable statement at its Toluca Complex in the State of Mexico: The facility has become the first plant in the world to produce the all-new Jeep Cherokee hybrid, and it is the only one globally that will manufacture the model for the Mexican market. The move underscores the country's growing role not just as a high-volume production base, but as a launch site for next-generation vehicle platforms.
Austrian fluid-connector manufacturer Henn inaugurated its Henn Americas plant in Silao, Guanajuato, with a $4 million investment. It has the potential to generate up to 100 jobs. The facility reinforces Guanajuato's Bajio corridor, which has emerged as one of North America's most competitive automotive supply chain hubs. Similarly, Hirschvogel Components Mexico expanded its forging capacity at its plant in San Juan del Rio, Queretaro, with the inauguration of a new press, strengthening its position as a strategic supplier to both domestic OEMs and international markets.
Climate technology company Munters offers a compelling growth story: Over 16 months, the company invested approximately $11 million to open a second plant in Nuevo Leon, creating 100 new jobs and nearly doubling its sales from $37 million to $68 million. A second expansion phase is still underway.
On the M&A front, Mexican automotive supplier Nemak closed the $336 million acquisition of GF Casting Solutions’ automotive business from Georg Fischer, the most significant transaction of the cycle. The deal brings nine manufacturing plants, one R&D center, and 2,500 employees into Nemak's portfolio, sharply accelerating its pivot toward structural components and chassis systems for e-mobility.
Mexico's aerospace sector also hit a milestone, with GE Aerospace, Diehl, Bombardier, and Safran collectively driving $209.2 million in investments in 2025 through new plant openings, expansion projects, and investment announcements. Queretaro captured the bulk of high-value, technology-intensive activity, while Sonora and Coahuila attracted projects centered on specialized industrial capabilities.
In Hidalgo, the municipality of Mineral de la Reforma granted an operating license to MAT Foundry Mexico, an automotive foundry with a potential investment of $69 million. The plant will generate 650 jobs and produce up to 1 million brake drums per year for the heavy-duty vehicle market.
In Zacatecas, Elastomer Solutions opened a $15 million facility that serves a roster of premium automotive clients, including BMW, Audi, Volkswagen, Mercedes-Benz, and Nissan.
Finally, Komatsu opened a $1.85 million branch in Colima to strengthen Pacific logistics and improve response times for industrial clients across the Bajio and western Mexico regions, leveraging its proximity to the Port of Manzanillo.
Brazil
Brazil's investment story is defined above all by the scale of its electromobility transformation. Between 2024 and 2025, the country attracted more than $23 billion in EV-related investment, driven primarily by Chinese manufacturers BYD, Great Wall Motors, and HAG. The capital influx is turning Brazil into the region's dominant hub for electric vehicle production, positioning the country to supply not only its fast-growing domestic market but also South America as a whole.
Beyond EVs, Japan's Yanmar announced a $60 million investment in Sao Paulo to build a new plant focused on increasing production capacity, automating assembly lines, and optimizing operations, a signal of continued confidence in Sao Paulo's deep manufacturing ecosystem.
In pharmaceuticals, Danish giant Novo Nordisk committed $85 million to expand production in Minas Gerais, a move that reflects both the state's pharmaceutical infrastructure and surging global demand for the company's diabetes and weight-management drug portfolio.
India's Tata Consultancy Services announced a $37 million service center in Londrina, Parana, which will be the company's largest in Latin America, deepening technology and services ties between India and Brazil and reinforcing Parana's emergence as a credible tech destination outside the Sao Paulo metropolitan area.
Perhaps the most strategically significant announcement came from Brazilian mining champion Vale, which committed $3.5 billion in copper investment through 2030. As demand for copper accelerates across electric vehicles, renewable energy infrastructure, and data centers, Vale is positioning itself as a critical supplier in a market widely expected to face structural shortfalls. The investment affirms Brazil's role as a key source of minerals essential to the global energy transition.
For more information on taking advantage of Mexico and Brazil’s opportunities, please contact Carlos Mortera at cmortera@AMTonline.org or click here.
