Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

BMW invests $1.7 billion to build electric vehicles in U.S

Published 10/19/2022, 11:01 AM
Updated 10/19/2022, 07:41 PM
© Reuters. FILE PHOTO: BMW logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay

© Reuters. FILE PHOTO: BMW logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay

By David Shepardson

SPARTANBURG, South Carolina (Reuters) -BMW AG said on Wednesday it will invest $1.7 billion to build electric vehicles in the United States, the latest announcement from a major automaker about plans to ramp up U.S. EV production.

The German company said it was making a new $1 billion investment in its Spartanburg, South Carolina plant to prepare for EV production and will spend $700 million on a new high-voltage battery assembly facility in nearby Woodruff, South Carolina, and create at least 300 jobs.

"It's the biggest single investment we've done so far," BMW Group Chairman Oliver Zipse told Reuters in an interview.

South Carolina Governor Henry McMaster said at a ceremony the BMW capital investment is the largest in the state's history.

BMW also said Chinese renewable energy group Envision's Automotive Energy Supply Corporation (AESC) will build a new battery cell plant in South Carolina with an annual capacity of up to 30 GWh to supply the automaker.

The luxury automaker plans to build at least six fully electric BMW models in the United States by 2030.

BMW would not set a date to end production of gas-powered vehicles, it said, raising concerns about new U.S. EV tax credit requirements aimed at preventing the use of Chinese battery components and minerals.

Zipse said no region could be completely independent especially on battery raw materials and that the United States "should have a regulation that is not completely unrealistic.”

He warned the new $7,500 EV tax credit law adopted in August could prevent automakers from using the credit.

"It would be a disaster if you stop industry from developing," Zipse said.

BMW said its new battery format will increase energy density by more than 20%, improve charging speed and boost range by up to 30%.

BMW Group had already announced that four additional battery cell factories will be built in Europe and China to meet its needs. Zipse said the location of a sixth planned cell factory would be determined by market demand.

The cell factories being built by company partners will each have an annual capacity of up to 20 GWh.

© Reuters. An employee works at the BMW manufacturing plant in Greer, South Carolina, U.S., October 19, 2022.   REUTERS/Bob Strong

BMW's 30-year-old South Carolina plant has built more than 6 million vehicles, employs more than 11,000 people, and has an annual production capacity of up to 450,000 vehicles.

South Carolina awarded a $65 million grant to Spartanburg County to assist with costs related to the project.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.