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BMW Announces $1.7 Billion Investment to Build Electric Vehicles in the US
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10-19-2022, 11:12 AM | #1 |
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BMW Announces $1.7 Billion Investment to Build Electric Vehicles in the US
![]() Featured on BIMMERPOST.com BMW Group Announces $1.7 Billion (USD) Investment to Build Electric Vehicles in the U.S. and Signs Agreement with Envision AESC for the Supply of Battery Cells to Plant Spartanburg Spartanburg (USA)/Munich. The BMW Group continues the roll-out of its electromobility plan with a new investment in the U.S. to expand Plant Spartanburg and the company’s manufacturing footprint in the U.S. BMW Group Chairman of the Board of Management, Oliver Zipse, announced today a $1.7 billion investment in its U.S. operations, including $1 billion to prepare for the production of electric vehicles at the company’s existing U.S. manufacturing facility in South Carolina, and $700 million to build a new high-voltage battery assembly facility in nearby Woodruff, SC. By 2030 BMW Group will build at least six fully electric models in the U.S. Zipse was joined today at Plant Spartanburg by South Carolina Governor Henry McMaster, Secretary of Commerce Harry Lightsey III, Chairman of Spartanburg County Council Economic Development Committee, David Britt, and Woodruff, SC Mayor, Kenneth Gist as he also announced an agreement to source next generation lithium-ion battery cells from Envision AESC, which will build a new plant in the state. “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’,” said Zipse on Wednesday. “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.” Envision AESC Battery Cell Plant in South Carolina to Supply Plant Spartanburg In line with the principle of "local for local,” the BMW Group aims to purchase battery cells for its electric vehicles where production takes place. The company has found a partner in Envision AESC, which will build a new battery cell factory in South Carolina, to supply Plant Spartanburg. Envision will produce newly developed round lithium-ion battery cells, which were specifically designed for the sixth generation of BMW eDrive technology, and will be used in the next generation electric vehicles. The annual capacity of the battery cell factory will be up to 30 GWh. The new battery format will increase energy density by more than 20 percent, improve charging speed by up to 30 percent and enhance range by up to 30 percent. At the same time, CO2 emissions from cell production will be reduced by up to 60 percent through the partial use of secondary lithium, cobalt and nickel material, as well as renewable energy for production. The cooperation with Envision AESC is an important step in the BMW Group's plan to strengthen its regional supply chains. The expansion of electric vehicle production in combination with a local battery cell factory will lead to the creation of new supply chains, new networks for sub-suppliers, and new jobs throughout the entire region. BMW Group has already announced that four additional battery cell factories will be built in Europe and China to meet its demand for next generation battery cells. The cell factories are being built by partners and will each have an annual capacity of up to 20 GWh. Increased Investment and Expanded Manufacturing Capacity in SC Of the new $1.7 billion investment announced today, $700 million will be used to build a new high-voltage BMW battery assembly center in Woodruff, SC, near Plant Spartanburg. The new facility will encompass over 1 million sq. ft., and produce next generation batteries for fully electric vehicles. Around 300 new jobs will be created on site. Plant Spartanburg currently produces lithium-ion battery modules for the two plug-in hybrid electric vehicles built at the plant, the BMW X3 xDrive30e (fuel consumption combined: 2.6-2.0 l/100 km WLTP; power consumption combined: 20.5-18.9 kWh/100 km WLTP, CO2 emissions combined: 59-45 g/km WLTP) and BMW X5 xDrive45e (fuel consumption in l/100 km combined: 1.7-1.2 WLTP; power consumption in kWh/100 km combined: 27.7-24.3 WLTP; CO2 emissions in g/km combined: 39-27 WLTP.). In 2021, nearly 70,000 electrified BMWs were built on site. The site in Woodruff will also leverage the experience and expertise developed in Plant Spartanburg’s existing operations at the new facility. “BMW’s sustained and impactful presence in South Carolina demonstrates the power of partnership and shared commitment to our state’s automotive industry success,” said Governor McMaster. “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 on helping lead the way.” BMW Group Plant Spartanburg Plant Spartanburg was established 30 years ago and began producing vehicles two years later. Since then, the plant has become the global center of competence for BMW Sports Activity Vehicles and a critical component of the company’s global production network. The plant currently represents an investment of nearly $12 billion, employs more than 11,000, and has an annual capacity of up to 450,000 vehicles. To date more than six million BMW vehicles have been built in the U.S. – for the U.S. and global markets. Based on this strength, BMW has been the largest automotive exporter from the U.S. by value for the past eight years. Plant Spartanburg currently 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. Production of the all-new hybrid-electric BMW XM (fuel consumption in l/100 km combined: 1.6-1.5 WLTP; power consumption in kWh/100 km combined: 30.1-28.9 WLTP; CO2 emissions in g/km combined: 36-33 WLTP. Preliminary figures that have not yet been officially confirmed.) will begin later this year. The plant is supported by more than 300 suppliers in the U.S., including over 40 direct tier 1 suppliers in South Carolina alone. “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,” said Robert Engelhorn, President and CEO, BMW Manufacturing Co. “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.” Ongoing Commitment in the U.S. In addition to sales and marketing operations, the BMW Group footprint in the U.S. consists of nearly 30 locations in 12 different states, including an advanced design studio, a technology research and development center, and a venture capital fund in California, BMW Group Financial Services, and BMW Manufacturing Corporation, which operates Plant Spartanburg in South Carolina. The BMW Group dealer network consists of nearly 650 independently owned BMW, MINI, Rolls-Royce and BMW Motorrad dealers nationwide. Taken together, the BMW Group’s operatons in the U.S. directly and indirectly provide and support more than 120,000 jobs in the U.S., and has contributed $43.3 billion to the U.S. economy. “Technology Openness” and Customer Focused Flexibility BMW Group is clearly focused on a sustainable future and shares common ambition in the U.S. with regard to climate goals and the reduction of greenhouse gas emissions. At the same time, the company is following a path of “technology openness” to offer a choice of fully electric, plug-in hybrid electric, and highly-efficient internal combustion options to its customers in meeting their diverse needs in vastly different geographies across the nation. BMW Group is committed to fulfilling its goal of making a minimum of 50% of its global sales battery electric vehicles by 2030. 360-Degree Approach BMW Group has also set an initial target to reduce CO2 emissions by 40% per vehicle by 2030. As BMW Group works towards the goal of climate neutrality, the company is focused on the reduction of CO2 emissions throughout a vehicle’s entire life cycle.
As the BMW Group continues towards an electric future, the company is looking beyond the vehicles themselves to ensure that it delivers sustainable solutions across the value chain and throughout the entire lifecycle of the vehicle. In the U.S. BMW currently offers two fully electric vehicles including the BMW iX Sports Activity Vehicle and the BMW i4 Gran Coupe. The fully electric BMW i7 Sedan (power consumption in kWh/100 km combined: 19.6-18.4 WLTP) will come to market later this year and BMW will make a significant step forward. For more information about the BMW Group’s focus on sustainability and unique approach to electrification, please visit: https://www.bmwgroup.com/en/sustainability.html Link to press release: https://www.press.bmwgroup.com/globa...nt-spartanburg
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10-19-2022, 07:13 PM | #3 |
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Throw in some chips and wire harnesses and give us back passenger lumbar!
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TXGrey1504.50 Errolsguvnor61.50 |
10-19-2022, 07:46 PM | #4 |
Luxury at the redline :)
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Good stuff BMW 👍🏻
I get the idea of wanting to leave the earth a little better than you found it but the truth is a majority of US' infrastructure is not yet ready of a demand for fully electric vehicles but certainly not from a lack of trying.. Regardless, I hope to own a BMW-engineered electric vehicle one sweet day - even if it ends up weighing like three tons. Possible an i2? 😗 . |
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10-19-2022, 07:50 PM | #5 |
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Awesome news.
Tax credit, more production and not having to wait 3-6+ months for an EV? Big W. |
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10-19-2022, 08:12 PM | #6 |
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What are the mines it apparently carefully sources? Also I see nothing in here about supporting charging infrastructure. And so the barriers remain. I don't recall oil producers demanding government and taxpayers pay for all the new gas stations.
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10-19-2022, 08:23 PM | #7 |
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Great news. Hopefully EV 2.0 batteries will be lighter with more charge by the time BMW is done with their plant investment.
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10-19-2022, 08:26 PM | #8 |
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The positive I see in this is the jobs and economic boost for the US. The "green" advocacy (like getting involved in dairy farms in California) is a unwelcome distraction from BMW's core mission to build desirable vehicles. Stay in your lane BMW.
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10-19-2022, 11:29 PM | #9 |
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I answered a BMW poll today. It asked me how I felt about EVs. I said I will not own one unless there is absolutely no other choice. And that at my age I am pretty confident I can make it the rest of my life without that being the case.
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10-19-2022, 11:32 PM | #10 |
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I hope they spend some of those bucks designing some decent looking cars without those ass grilles.
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10-19-2022, 11:35 PM | #11 |
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Good, bring some cool hybrids and EV's here. Tired of Europe getting all the good shit while we get nothing. Hell, we can't even buy an x3 30e anymore.
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10-19-2022, 11:53 PM | #12 |
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Nice for the growth of EVs in the US for sure! Tesla truly did a horse job pulling the whole industry in to the right direction on EVs an alternative fuels
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10-20-2022, 12:16 AM | #13 |
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+1!! And actually designing a dashboard rather than sticking an iPad to it. I know people complained a lot about the iPad look on the F30, and I defended it, but this new thing is a whole different ballgame.
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10-20-2022, 01:11 AM | #14 |
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My wife's X5 was built in Spartanburg and according to the news release they produce 4 M models. Fingers crossed one of them is the X6M as it may be my next BMW. Good news on the EV tax credit front for those interested but at this point there is only ICE in my world as the sound of the engine plus exhaust (at least for me) is a significant factor in the enjoyment of the drive.
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10-20-2022, 09:27 AM | #15 |
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let the good times roll, more jobs also which is great
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10-20-2022, 12:07 PM | #16 | |
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Quote:
![]() Jk, just hit 43 myself and I am not sold on EVs for several reasons and there is lots of evidence their environmental "footprint" only is better than gas engines after something like 90,000 miles (at which time many will be scrapped or need new batteries which resets footprint). I like that Toyota isn't giving up on hydrogen and sounds like a few other companies as well. Seems like the "cleanest" option just hard to implement and if ev charging stations take over it will be even harder because of the investment spent on those. |
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10-20-2022, 12:08 PM | #17 |
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Great news. Wife has been driving an iX for around 2 months. It's been a great experience. Built like a solid block. Closest experience is flying in a Learjet!
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10-20-2022, 12:23 PM | #18 | |
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Quote:
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10-20-2022, 12:57 PM | #19 |
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Nice to see BMW make such a significant investment in EV technology.
The infrastructure to support EVs (grid, charging stations) will continue to lag for some time in the future, including producing of electricity from non-fossil fuel sources. The transition period will be imperfect. |
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10-20-2022, 05:17 PM | #20 |
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EV's typically charge overnight at home when the power grid isn't taxed by load so I don't think grid capacity is as much of a problem as people claim it is.
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10-29-2022, 09:49 PM | #21 |
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