BMW Group has unveiled plans to invest $1.7 billion in expanding its US operations to build electric vehicles (EVs) and batteries.
The German carmaker said the investment will include $1bn to prepare for production of EVs at its existing Spartanburg factory in South Carolina, and $700mln for a new high-voltage battery-assembly facility in nearby Woodruff in the state.
The company expects to produce at least six fully electric models in the US by 2030. The Spartanburg facility, where the investment announcement took place, currently produces BMW X SUVs and lithium-ion battery modules for its two plug-in hybrid electric vehicles. Production of the new hybrid-electric BMW XM is expected to begin later this year.
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″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,” BMW chair Oliver Zipse said in a news release.
BMW also announced a deal to purchase battery cells from Japan-based Envision AESC, which will build a new battery cell factory in South Carolina to supply the autos group's plants.
Zipse commented: "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.”
The Envision AESC facility is expected to have annual production capacity of 30 gigawatt hours, in line with plans of other automakers and battery suppliers for plants, BMW said.
In April, Envision announced plans to spend $2 billion to build a second US plant in Kentucky. Its first plant in Tennessee supplies Nissan Motor.
BMW has already announced four additional battery cell factories will be built in Europe and China to meet its demand for next-generation battery cells.