German auto giant BMW to invest $1.7bn to produce electric vehicles in US

German automobiles manufacturer BMW Group will invest $1.7 billion to produce battery electric vehicles in the US, as it targets to release at least six fully electric models in the North American country by 2030.

The electromobility investment of $1 billion will be made in its Plant Spartanburg to manufacture the electric vehicles, while the remaining $700 million will be spent on building a new high-voltage battery assembly facility in nearby Woodruff, South Carolina.

Covering an area of over one million sq. ft., the new battery assembly facility in South Carolina will produce next generation batteries for fully electric vehicles.

German automobiles manufacturer BMW announces $1.7bn investment in US to produce electric vehicles. Photo courtesy of BMW Group.

In addition, BMW Group has signed an agreement with Envision AESC for the supply of battery cells to Plant Spartanburg.

Envision AESC will construct a new battery cell factory in South Carolina, where it will manufacture newly developed round lithium-ion battery cells for use in the next generation electric vehicles.

The new battery cell factory in South Carolina will have an annual production capacity of up to 30GWh.

Oliver Zipse — BMW Group Chairman of the Board of Management said: “For decades, Plant Spartanburg has been a cornerstone of the global success of the BMW Group. 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.”

Currently, BMW Plant Spartanburg manufactures lithium-ion battery modules for the two plug-in hybrid electric vehicles, the BMW X3 xDrive30e and BMW X5 xDrive45e.

Overall, the car manufacturing plant in Spartanburg produces 11 models including the BMW X3, X4, X5, X6, and X7 Sports Activity Vehicles, four BMW M models, and two plug-in hybrid electric models.

Robert Engelhorn — BMW Manufacturing President and CEO 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.

“With this latest investment, we futureproof 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.”