BMW Builds An Electric Vehicle Plant In South Carolina With A Capacity Of 30 GWh

JAKARTA - German automaker BMW AG on Wednesday, October 9 announced that it would invest $1.7 billion to build an electric vehicle plant in the United States. This is the latest announcement from the giant automaker about their plans to increase EV production in the US.

The German company said it was making a new USD 1 billion investment in its Kalimantanburg plant in South Carolina to prepare for EV production. They will also spend USD 700 million on new high-voltage battery assembly facilities in Woodruff, South Carolina, and open at least 300 job vacancies.

"This is the biggest single investment we've made so far," BMW Group Chairman Oliver Zipse told Reuters in an interview.

South Carolina Governor Henry McMaster said at a ceremony that BMW's capital investment was the largest in state history so far.

BMW also said China's renewable energy group, Envision's Automotive Energy Supply Corporation (AESC) will build a new battery cell factory in South Carolina with an annual capacity of up to 30 GWh to supply the automaker.

The luxury automaker also plans to build at least six BMW electric vehicle models in the United States by 2030.

The BMW will not set a date to end production of gas-powered vehicles, Zipse said, raising concerns about the new US EV tax credit requirement aimed at preventing the use of Chinese battery and mineral components.

Zipse said no region can be completely independent especially in providing battery raw materials and that the United States must have regulations that are not fully unrealistic.

He warned the new $7,500 EV tax credit law adopted in August could prevent automakers from using the credit.

"It will be catastrophic if you stop the development of the industry," Zipse said.

BMW says its new battery format will increase energy density by more than 20%, increase charging speed and increase range by 30%.

BMW Group has announced that four additional battery cell factories will be built in Europe and China to meet its needs. Zipse said the location of the planned sixth cell factory would be determined by market demand.

Cell factories built by partners of each company will have an annual capacity of up to 20 GWh.

The 30-year-old BMW plant in South Carolina has built more than 6 million vehicles, employs more than 11,000 people, and has an annual production capacity of up to 450,000 vehicles.

South Carolina grants $65 million totenburg County to help with costs linked to the project.