BMW invests $1.7-B for EV production in US

MANILA: The BMW Group's ongoing rollout of its electromobility program includes a new investment for the expansion of Plant Spartanburg and the company's production footprint in the US.

BMW Group Board of Management Chairman Oliver Zipse announced a $1.7-billion investment in the company's US operations, of which $1 billion will be used to prepare the company's current US production plant in South Carolina for the production of electric vehicles and $700 million to construct a new high-voltage battery assembly facility in Woodruff. BMW Group targets to release at least six fully electric vehicle models in the US by 2030.

The announcement was made at Plant Spartanburgin front of South Carolina Governor Henry McMaster, US Secretary of Commerce Harry Lightsey III, Spartanburg County Council Economic Development Committee Chairman David Britt, and Woodruff Mayor Kenny Gist. Zipse also made an announcement about a deal to purchase next-generation lithium-ion battery cells from Envision AESC, which will construct a new plant in the state.

“For decades, Plant Spartanburg has been a cornerstone of the global success of the BMW Group. It is the home of the BMW X models that are so popular all over the world. 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. That means the ‘Home of the X’ is also becoming the ‘Home of the Battery Electric Vehicle.’ In addition, we can showcase BMW Group’s ‘local for local’ principle: Our newly developed sixth generation battery cells, which were specifically designed for the next generation electric vehicles, will be sourced here in South Carolina – where X goes electric,” Zipse stated.

In keeping with the “local for local” principle, the BMW Group has found a partner in Envision AESC, which will establish a new battery cell production plant in South Carolina to supply Plant Spartanburg. Next-generation electric vehicles will use newly developed circular lithium-ion battery cells from Envision that were designed exclusively for the sixth generation of BMW eDrive technology. The battery cell facility will have a 30GWh annual capacity.

The new battery structure will result in an energy density gain of more than 20%, a charging speed increase of up to 30%, and a range increase of 30%. At the same time, the use of some secondary lithium, cobalt, and nickel materials, along with the use of renewable energy for production, will reduce CO2 emissions from cell production by up to 60%.

In order to strengthen its regional supply chains, the BMW Group has taken a huge step by collaborating with Envision AESC. A local battery cell factory and increased production of electric vehicles will result in the development of new supply chains, sub-supplier networks, and job opportunities throughout the area.

The BMW Group has already announced the construction of four more battery cell plants in Europe and China in order to address the demand for next-generation battery cells. The construction of the cell plants are being handled by partners and each will have an annual capacity of up to 20GWh.

The new high-voltage BMW battery assembly center that will be constructed in Woodruff is also expected to create  300 new jobs. The facility will be over one million square feet large and will manufacture next-generation batteries for fully electric vehicles.

Plant Spartanburg currently manufactures lithium-ion battery modules for the two plug-in hybrid electric vehicle models produced at the plant, the BMW X3 xDrive30e and the BMW X5 xDrive45e. Around  70,000 electrified BMWs were produced at the plant in 2021. The Woodruff site will make use of the expertise gained in Plant Spartanburg's current operations.

“BMW’s sustained and impactful presence in South Carolina demonstrates the power of partnership and shared commitment to our state’s automotive industry success. With today’s announcement of a $1 billion expansion to Plant Spartanburg for manufacturing electric vehicles as well as $700 million for a new plant in Woodruff to assemble battery units, the road to the future is here, and I applaud BMW for helping lead the way,” Governor McMaster said.

“This is a very important step for Plant Spartanburg as we continue our legacy of producing high-quality vehicles, and build on the success of the last 30 years,” BMW Manufacturing Co. President and Chief Executive Officer Robert Engelhorn stated. “With this latest investment, we future-proof our operations and prepare the plant for electrification and new technologies, ensuring both the long-term success of our company and our position as an attractive and viable employer in the state of South Carolina.”

Photo from BMW Group

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