[Jason]

Ready for the Electric Future: Groundbreaking on New BMW Group High Voltage Battery Assembly Factory in South Carolina, USA

27.06.2023 PRESS RELEASE

+++ New BMW Group Plant Woodruff will produce high-voltage batteries for fully electric BMW X models at Plant Spartanburg. +++ Investments of $ 700 million in the construction of the new Plant Woodruff and $ 1 billion in Plant Spartanburg in preparation for electric vehicle production +++ Local for Local: short distances between cell supplier, battery assembly and vehicle production plant +++

• New BMW Group Plant Woodruff will produce high-voltage batteries for fully electric BMW X models at Plant Spartanburg.
• Investments of $ 700 million in the construction of the new Plant Woodruff and $ 1 billion in Plant Spartanburg in preparation for electric vehicle production
• Local for Local: short distances between cell supplier, battery assembly and vehicle production plant

Woodruff, S.C., U.S.A. – The BMW Group took a major step today towards building electric vehicles in the United States as it broke ground for a new high-voltage battery assembly plant in Woodruff, South Carolina. The BMW Group Plant Woodruff will produce sixth-generation batteries to supply fully electric vehicles at nearby BMW Manufacturing in Spartanburg. More than 300 jobs will be created onsite at Plant Woodruff with the opportunity to grow.

“We're making the BMW Group electric. Our new battery assembly plant in Woodruff will soon play an important role in our electric future here in the USA,” said Ilka Horstmeier, Member of the Board of Management of BMW AG responsible for People and Real Estate. “Through the Woodruff plant, we expand our footprint in the state of South Carolina. At the same time, we are taking our associates with us in this transformation. Our new Technical Training Center at the Spartanburg plant will prepare our 11,000 associates for the future. In this way, we are taking responsibility as a reliable employer and offer future-proof jobs at the same time.”

“Today’s groundbreaking is the start of a new era at Plant Spartanburg as we prepare to produce fully electric BMW X models for the world,” says Robert Engelhorn, president and CEO of BMW Manufacturing in Spartanburg. “The road to the future begins here in South Caronlina. Plant Woodruff will be state-of-the-art in terms of sustainability, flexibility, and digitalization.”

Extensive Investments in Plants Spartanburg and Woodruff

In October 2022, BMW Group announced a new $1.7 billion investment in its U.S. operations, including $1 billion to prepare Plant Spartanburg for the production of fully electric vehicles and $700 million to build a new high-voltage battery assembly plant. The Woodruff facility will be about 100 acres in size that includes construction of a technology building and support buildings such as a cafeteria, fire department, and energy center.

Local for Local: Short Distances between Battery and Vehicle Production.

“We are working consistently to advance the transformation to electromobility”, says Markus Fallböhmer, Senior Vice President of Battery Production at BMW AG. "Cutting-edge production facilities for top-performance high-voltage batteries are a decisive factor in this." In expanding its production network, the company is following the principle of local for local: "Close connection of battery production with vehicle production is part of our strategy," explains Fallböhmer.

As part of the BMW Group’s “local for local” approach, the company will purchase battery cells for its electric vehicles from partner AESC, which is building a new 30 GWh battery cell factory in Florence, South Carolina. They will produce newly developed round lithium-ion battery cells, specifically designed for the sixth generation of BMW eDrive technology. The new battery format will increase energy density by more than 20 percent and improve charging speed and range by up to 30 percent.

The BMW Group is particularly focused on keeping the carbon footprint and consumption of resources for production as low as possible, starting in the supply chain. Cell manufacturers will use cobalt, lithium and nickel that include a percentage of secondary material, i.e. raw materials that are not newly mined, but already in the loop, in production of battery cells. Combined with the commitment to use only green power from renewable energies for production of battery cells, the BMW Group will reduce the carbon footprint of battery cell production by up to 60 percent.

High Ecological Standards: Binding CO2 when pouring concrete

As the next BMW iFACTORY, BMW Group Plant Woodruff will also meet high ecological standards. The site will be operated without fossil fuels and will use 100% green electricity. The BMW Group has set itself the goal of reducing CO2 emissions in its global production network by 80 per cent by 2030 compared to 2019. Plant roofs are being prepared for the installation of photovoltaic systems. Intelligent LED lighting with motion detectors and an efficient dimming strategy reduce energy consumption and light emissions to a minimum. The high-voltage battery assembly basically requires no water. Rainwater is collected and used for purposes outside production. An innovative technology that involves injecting captured CO2 into the fresh concrete during the mixing process will be used in the construction of the plant. This sequesters CO2 permanently at a molecular level and increases the strength of the concrete.

BMW Group in South Carolina

Since 1992, the BMW Group has invested about $12.4 billion in its South Carolina operations. BMW Manufacturing is the largest BMW Group plant in the world, producing more than 1,500 vehicles each day. The plant is an important part of BMW’s global production network and plays a critical role in meeting the high demand for BMW Sports Activity Vehicles and Coupes in the U.S. and around the world. Nearly 60 percent of its vehicles are shipped to about 120 global markets, making BMW the largest automotive exporter by value in the United States for nine consecutive years. In 2022, approximately 60 percent of BMW vehicles sold in the U.S. came from Plant Spartanburg. The factory has an annual production capacity of up to 450,000 vehicles and employs more than 11,000 people.

[JustChris]

Awesome!

[VirtualGuitars]

I wonder if the US Tax incentives for EVs have anything to do with this decision. Each year, the higher the percentage is that the batteries must be made in America.

[///M TOWN]

Very cool

[hufington]

Very happy for the US! Not so much for driving pleasure.

[kamilbaran]

I wonder what the junk yards will be like when they’re filled with electric cars and their lithium batteries begin to leak. Way better for the environment than engine fumes.

[///M TOWN]

Originally Posted by kamilbaran

“I wonder what the junk yards will be like when they’re filled with electric cars and their lithium batteries begin to leak. Way better for the environment than engine fumes.”

That’s hilarious… 😂

A majority of those batteries will be given a second life

Powering a School for an example when the power goes out

[cfm56d7b]

Originally Posted by VirtualGuitars

I wonder if the US Tax incentives for EVs have anything to do with this decision. Each year, the higher the percentage is that the batteries must be made in America.

Undoubtedly the tax incentives played a big role.

[stulio2181]

Those kids in the Congo are gonna be working overtime.

[Schn3ll]

Originally Posted by ///M TOWN

That’s hilarious… 😂

A majority of those batteries will be given a second life

Powering a School for an example when the power goes out

Oh yeah, I remember after all of my AA batteries, phones, gadgets, etc. that died, I immediately sent them to my local school so the local battery engineers could figure out a way to make them power the local school. Then we all had a laugh and I hopped in my fart powered space shuttle and visited Elon on Mars.

[///M TOWN]

Originally Posted by Schn3ll

Oh yeah, I remember after all of my AA batteries, phones, gadgets, etc. that died, I immediately sent them to my local school so the local battery engineers could figure out a way to make them power the local school. Then we all had a laugh and I hopped in my fart powered space shuttle and visited Elon on Mars.

Not sure what kind of weed you’re smoking but I’d seriously consider dialing it back ever so slightly

[GOLFFRR]

and so it begins....

[JBH6612]

Build more EVs so they can drain the electric grid! Save earth! Global warming! Let’s throw shit on priceless paintings to prove our point! Wahhhhhhhh! Need more purple and green hair dyes and gain more weight!

But first let me get ready by using everything in my shitty apartment made by gas and oil and get to the protest in my Toyota Yaris!

[Tejas1836]

As VW is cutting back on EV production due to weakening demand

[cfm56d7b]

Originally Posted by stulio2181

Those kids in the Congo are gonna be working overtime.

Unfortunately. The topic how required metals and rare earths are extracted and processed does not receive any noticeable coverage.

Worth reading:

https://www.terramanta.com/post/mayb...lectricvehicle

[stulio2181]

Originally Posted by cfm56d7b

Unfortunately. The topic how required metals and rare earths are extracted and processed does not receive any noticeable coverage.

Worth reading:

https://www.terramanta.com/post/mayb...lectricvehicle

Yep. The bottom of the supply chain is a dirty business that doesn’t get enough attention. Not to mention the glaring energy supply issue. Unfortunately, our power grids are now designed by bureaucrats and not engineers.

[Schn3ll]

Originally Posted by stulio2181

Yep. The bottom of the supply chain is a dirty business that doesn’t get enough attention. Not to mention the glaring energy supply issue. Unfortunately, our power grids are now designed by bureaucrats and not engineers.

Some might even call it "An Inconvenient Truth"...

The fact is that demand is certainly waning for EV's, so this is an interesting move (albeit good for my local community as I live 15 min away from this factory).

I have moved to an all Porsche garage so my perspective is more on the luxury EV side. I owned a Taycan and it lasted 5 months. It was such a bore to drive and too heavy for its own good, plus it was a buggy mess. And values were tanking so it was like catching a falling knife - I sold my car on New Year's Eve (trade in) and as of last month a dealer still had not yet sold it and was offering it for sale for LESS than I received in trade-in.

I buy from and visit 2 local Porsche dealerships and both are seeing a huge decline in Taycan sales and they are bracing for the insane move of transitioning the 718 platform to full EV (yes - the most heavily tracked, mid engine platform on the planet will no longer be allowed on most tracks and they'll take away your manual transmission while they are at it - brilliant.) There is very little buzz and customers are scrambling trying to get the last few gas 718 allocations.

Batteries present a whole host of issues besides just pollution and charging networks. What gets me is in 10 years or so, when the batteries are shot - who is going to replace them?

It's going to cost an arm and a leg for the pack, and manufacturers aren't going to support 10 year old battery packs that have to be built just-in-time (they degrade just by sitting so you can't stockpile them now + the sheer size). If, and it's a big if, a 3rd party vendor decides to make a pack for a 10 year old car, logistics to install (if dealership even lets you due to the compatibility/liability issues) can you afford it? Would the car be worth less than the battery replacement cost? Is the whole car now a disposable object like an old iPhone?

Lastly the reason I don't like EV's is that there is this cult-like behavior of the fans that seemingly come out of the woodwork to rush to their defense. Odd/weird behavior supporting a clearly flawed product when they have zero skin the game.

[F32Fleet]

Originally Posted by VirtualGuitars

I wonder if the US Tax incentives for EVs have anything to do with this decision. Each year, the higher the percentage is that the batteries must be made in America.

Well of course it does but so does the fact that it's cheaper to build in US rather than ship from overseas. BMW Greer churns out a ton of vehicles every year.

[F32Fleet]

Originally Posted by stulio2181

Those kids in the Congo are gonna be working overtime.

It's either them or the indentured Bangladeshi in Saudi Arabia