BMW to invest $1.7 billion in U.S. to produce electric vehicles

BMW Group plans to invest $1.7 billion in its U.S. operations to construct electric vehicles and batteries, the corporate introduced Wednesday.

The funding will embody $1 billion to put together for manufacturing of EVs on the automaker’s present Spartanburg manufacturing facility in South Carolina, and $700 million for a brand new high-voltage battery-assembly facility in close by Woodruff.

The German automaker expects to produce a minimum of six totally electric fashions in the U.S. by 2030. The Spartanburg facility, the place the funding announcement came about, presently produces BMW “X” SUVs and lithium-ion battery modules for its two plug-in hybrid electric vehicles. Production of the brand new hybrid-electric BMW XM is predicted to start later this yr. 

Going forward, it will also be a major driver for our electrification strategy, and we will produce at least six fully electric BMW X models here by 2030,” BMW Chair Oliver Zipse mentioned in a launch.

BMW on Wednesday additionally introduced a deal to buy battery cells from Japan-based Envision AESC, which is able to construct a brand new battery cell manufacturing facility in South Carolina to provide the BMW crops.

The Envision AESC facility is predicted to have annual manufacturing capability of 30 gigawatt hours — in line with plans of different automakers and battery suppliers for U.S. crops, BMW mentioned.

A spokeswoman for Envision AESC mentioned the brand new plant is predicted to be a multibillion funding, however declined to specify an actual quantity. She mentioned a location for the ability is predicted to be introduced by the top of the yr.

In April, the corporate introduced plans to spend $2 billion to construct a second U.S. plant in Kentucky. Its first plant in Tennessee provides Nissan Motor. Its different main buyer is BMW in the U.S., with discussions ongoing with “a number of global automotive manufacturers and partners,” the spokeswoman mentioned.

BMW has already introduced 4 extra battery cell factories can be constructed in Europe and China to meet its demand for next-generation battery cells.

The bulletins are the most recent of a number of current multibillion-dollar investments in U.S manufacturing of EVs and batteries amid tightening emissions rules and laws to encourage home manufacturing.

Automakers are additionally going through stricter sourcing tips which might be a part of the Inflation Reduction Act and the United States-Mexico-Canada Agreement, previously the North American Free Trade Agreement. Both insurance policies elevated necessities for domestically sourced car components and supplies to keep away from tariffs or qualify for monetary incentives.

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