The BMW Group announced it is investing $1.7 billion in the US. The money will be used to build a new battery cell factory and set up an automaker’s plant in South Carolina to produce electric vehicles.
About $1 billion will be used to upgrade the company’s Spartanburg facility, where the company plans to produce six electric vehicles by 2030. Another $700 million will be used to build a new battery plant near Woodruff, South Carolina. The new plant, to be built by Envision AESC, will cover 1 million square feet and create 300 new jobs.
180 Photo
The battery factory will produce a new round of lithium-ion battery cells from the automaker. BMW promises 30 percent more range with the new battery while reducing the price by up to 50 percent, which BMW believes it is necessary to expand EV adoption. This new cell technology is 20 percent denser and can increase charging times by up to 30 percent. Their production will also reduce CO2 emissions by up to 60 percent due to using recycled materials and renewable energy sources. The new plant will have an annual capacity of up to 30 gigawatt-hours.
The BMW Spartanburg factory is already producing battery modules for the BMW X3 and X4 plug-in hybrids. Last year, BMW built nearly 70,000 electric models at the site. BMW founded the factory 30 years ago and has been manufacturing vehicles for 28 years. The plant employs more than 11,000 people and can produce up to 450,000 cars per year. It currently makes 11 models, with production of the BMW XM starting at the factory later this year.
BMW is just the latest automaker to announce an investment in the US. Last week, Honda and LE Energy Solution announced they would both build a 40-GWh battery plant in Ohio, which could cost up to $4.4 billion. In September, Toyota announced a $2.5 billion investment in a US battery production facility.
BMW has announced that four additional battery cell plants will be built in Europe and China, each with an annual capacity of 20 GWh. As the industry shifts, we expect more automakers to announce investments designed to increase EV production.
