BMW is one of the most successful automakers in the world and one of the most innovative. The German company has been at the forefront of electrification, offering a range of plug-in hybrid and fully electric models that combine performance, efficiency, and luxury. Now, BMW is taking its electrification strategy to the next level by investing $1.7 billion in its U.S. operations, including $1 billion to prepare for the production of electric vehicles at its existing manufacturing facility in Spartanburg, South Carolina and $700 million to build a new high-voltage battery assembly facility in nearby Woodruff, SC.
Why South Carolina?
BMW has been producing vehicles in the U.S. since 1994 when it opened its first plant outside of Germany in Spartanburg. Since then, the plant has grown to become the largest BMW production site in the world, employing more than 11,000 people and producing more than 400,000 vehicles per year. The plant is also the home of the BMW X models, the popular SUVs that account for more than half of BMW's global sales.
By investing in South Carolina, BMW is demonstrating its commitment to the U.S. market, which is one of its most important and profitable. The U.S. is also a key driver for the demand for electric vehicles, especially with the new federal EV tax credit that offers up to $12,500 for buyers of EVs made in the U.S. by union workers. By producing electric vehicles locally, BMW can benefit from this incentive and avoid tariffs and logistics costs.
Moreover, South Carolina offers a favorable business environment for BMW, with a skilled workforce, a supportive government, and a network of suppliers and partners. One of these partners is Envision AESC, a Japan-based energy company that will supply BMW with next-generation lithium-ion battery cells for its electric vehicles. Envision AESC will build a new battery cell factory in South Carolina, with an annual capacity of 30 gigawatt-hours (GWh), making it one of the largest battery plants in the U.S.
What Electric Vehicles Will BMW Make in South Carolina?
BMW has not revealed the exact models that will be produced in South Carolina, but it has said that it will build at least six fully electric X models by 2030. These could include the electric versions of the X3, X5, X6, and X7 and new models such as the BMW iX3 and the BMW iX5. BMW has also announced plans to launch the BMW i7, which could be made in South Carolina.
BMW's electric vehicles will be based on its fifth-generation eDrive technology, which integrates the electric motor, transmission, and power electronics into a single unit. This allows for more flexibility and efficiency in designing different models and platforms. BMW's electric vehicles will also feature its newly developed sixth-generation battery cells, which are round instead of prismatic or pouch-shaped. These cells are designed to offer higher energy density, lower cost, and better safety.
