BMW plans to invest $1.7 billion in U.S. to produce electric vehicles

BMW Group plans to put $1.7 cardinal successful its U.S. operations to physique electrical vehicles and batteries, the institution announced Wednesday.

The concern volition see $1 cardinal to hole for accumulation of EVs astatine the automaker's existing Spartanburg mill successful South Carolina, and $700 cardinal for a caller high-voltage battery-assembly installation successful adjacent Woodruff.

The German automaker expects to nutrient astatine slightest six fully electrical models successful the U.S. by 2030. The Spartanburg facility, wherever the concern announcement took place, presently produces BMW "X" SUVs and lithium-ion artillery modules for its 2 plug-in hybrid electrical vehicles. Production of the caller hybrid-electric BMW XM is expected to statesman aboriginal this year. 

"Going forward, it volition besides beryllium a large operator for our electrification strategy, and we volition nutrient astatine slightest six afloat electrical BMW X models present by 2030," BMW Chair Oliver Zipse said successful a release.

BMW connected Wednesday besides announced a woody to acquisition artillery cells from Japan-based Envision AESC, which volition physique a caller artillery compartment mill successful South Carolina to proviso the BMW plants.

The Envision AESC installation is expected to person yearly accumulation capableness of 30 gigawatt hours — successful enactment with plans of different automakers and artillery suppliers for U.S. plants, BMW said.

A spokesperson for Envision AESC was not instantly disposable for comment. In April, the institution announced plans to walk $2 cardinal to physique a 2nd U.S. works successful Kentucky. Its archetypal works successful Tennessee supplies Nissan Motor.

BMW has already announced 4 further artillery compartment factories volition beryllium built successful Europe and China to conscionable its request for next-generation artillery cells.

The announcements are the latest of respective caller multibillion-dollar investments successful U.S accumulation of EVs and batteries amid tightening emissions regulations and authorities to promote home manufacturing.

Automakers are besides facing stricter sourcing guidelines that are portion of the Inflation Reduction Act and the United States-Mexico-Canada Agreement, formerly the North American Free Trade Agreement. Both policies accrued requirements for domestically sourced conveyance parts and materials to debar tariffs oregon suffice for fiscal incentives.