On Wednesday, BMW announced a major investment in a plant in the US to prepare for production of electric vehicles.
The automaker said it will spend $1 billion on its plant in Spartanburg, South Carolina, to prepare the site for electric vehicles, plus another $700 million to build a new battery plant in Woodruff , nearby South Carolina and employed 300 workers.
The Spartanburg plant is BMW’s largest plant in the world, with a total of 433,810 vehicles in service by 2021. The company produces the X3, X4, X5, X6 and X7 lines, including hybrid versions of several types. that car and will soon add production new one 2023 XM hybrid high-performance SUV.
BMW says at least six EVs will be produced at the Spartanburg plant by 2030. Most of these will likely be electric versions of existing SUVs.
BMW assembly plant in Spartanburg, South Carolina.
The battery plant in Woodruff will be operated in partnership with Envision AESC. The battery supplier was founded as AESC in 2007 by Nissan and the Japanese companies NEC and Tokin, although Nissan sell off its controlling shares for China’s Monitoring Group in 2018.
The factory will have a capacity of up to 30 gwh and start production BMW’s new sixth generation battery, including cylindrical cells. This design offers a packaging advantage over current prismatic cell designs and, therefore, improved density and performance. BMW quotes that power density is increased by more than 20%, charging speed is improved by up to 30% and range is enhanced by up to 30%.
BMW and its partners also plan to add four battery plants in Europe and China. Each plant will have a capacity greater than 20 gwh.
BMW’s announcement is the latest in a series of recent multi-billion dollar investments in electric vehicle manufacturing in the US following the passage of legislation to encourage domestic manufacturing, namely the Inflation Reduction Act and the European Union. United States-Mexico-Canada Agreement. With these policies, automakers can avoid tariffs or qualify for financial incentives by producing domestically.