BMW drops $1.7 billion investment to make electric vehicles in the US

BMW will invest $1.7 billion into its US operations, with a heavy focus on building electric vehicles in the United States.

2

A total of $1 billion will be invested towards EV production at Plant Spartanburg, while the remaining $700 million going toward a high-voltage battery assembly facility. The German automaker plans to use its Plant Spartanburg facility in South Carolina as the main hub to manufacture at least six fully electric BMW X models by 2030.

The hybrid-electric BMW XM is expected to begin at Plant Spartanburg later this year. Meanwhile, the company also produces the X3, X4, X5, X6, X7, and four BMW M models at the South Carolina factory.

As noted by Oliver Zipse, BMW Group Chairman of the Board of Management:

"For decades, Plant Spartanburg has been a cornerstone of the global success of the BMW Group. It is 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.'"

Throughout all 2021, BMW made almost 70,000 electrified BMWs on site, and that number is expected to ramp up before the end of the decade. Plant Spartanburg currently manufactures battery modules for the BMW X3 xDrive30e and BMW X5 xDrive45e plug-in hybrid EVs.

Here is what South Carolina Governor Henry McMaster had to say:

"BMW's sustained and impactful presence in South Carolina demonstrates the power of partnership and shared commitment to our state's automotive industry success. 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 already has plans to open four additional battery cell factories in Europe and China, while executives work to meet growing demand.

Automakers are scrambling to retool factories or build new facilities aimed at battery production or EV assembly. They are facing increased pressure under the Inflation Reduction Act and United States-Mexico-Canada Agreement requires stricter sourcing guidelines - and the multi-billion-dollar announcements are expected to continue moving forward.