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. functions to develop electric powered motor vehicles and batteries, the firm announced Wednesday.

The expense will consist of $1 billion to get ready for production of EVs at the automaker’s current Spartanburg factory in South Carolina, and $700 million for a new large-voltage battery-assembly facility in nearby Woodruff.

The German automaker expects to develop at the very least 6 totally electrical models in the U.S. by 2030. The Spartanburg facility, where the financial commitment announcement took position, at the moment makes BMW “X” SUVs and lithium-ion battery modules for its two plug-in hybrid electric autos. Production of the new hybrid-electrical BMW XM is anticipated to start later this calendar year. 

Going ahead, it will also be a key driver for our electrification approach, and we will create at minimum 6 thoroughly electrical BMW X types here by 2030,” BMW Chair Oliver Zipse explained in a release.

BMW on Wednesday also announced a offer to acquire battery cells from Japan-dependent Visualize AESC, which will build a new battery cell manufacturing facility in South Carolina to source the BMW plants.

The Envision AESC facility is predicted to have yearly generation ability of 30 gigawatt hrs — in line with programs of other automakers and battery suppliers for U.S. vegetation, BMW claimed.

A spokeswoman for Envision AESC said the new plant is anticipated to be a multibillion expense, but declined to specify an actual volume. She said a spot for the facility is envisioned to be announced by the close of the calendar year.

In April, the corporation declared ideas to commit $2 billion to establish a next U.S. plant in Kentucky. Its initially plant in Tennessee provides Nissan Motor. Its other main client is BMW in the U.S., with discussions ongoing with “a quantity of international automotive brands and associates,” the spokeswoman explained.

BMW has by now announced 4 further battery mobile factories will be built in Europe and China to meet its demand from customers for subsequent-technology battery cells.

The announcements are the most current of many the latest multibillion-dollar investments in U.S generation of EVs and batteries amid tightening emissions polices and laws to inspire domestic production.

Automakers are also struggling with stricter sourcing rules that are component of the Inflation Reduction Act and the United States-Mexico-Canada Settlement, formerly the North American Free of charge Trade Arrangement. Each guidelines amplified demands for domestically sourced auto elements and resources to stay away from tariffs or qualify for fiscal incentives.