Tesla’s Chinese Battery Maker Is Eyeing Factory Sites in Mexico

China’s Contemporary Amperex Technology Co. Ltd., the world’s biggest maker of batteries for electric vehicles, is considering at least two locations in Mexico for a manufacturing plant to potentially supply Tesla Inc. and Ford Motor Co.

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 attractive in part because it’s ...