BMW Group will spend $1.7 billion to expand its manufacturing complex in Spartanburg, SC, to produce electric vehicles powered by battery cells from Envision AESC.
The plan includes a $1 billion investment in the German automaker’s existing U.S. manufacturing and assembly complex in Spartanburg, and $700 million to build a battery assembly facility in nearby Woodruff, SC, says Oliver Zipse, BMW Group Board of Management chairman.
“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,” he says. “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.”
Envision 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 more than 20%, improve charging speed up to 30% and enhance range up to 30%. CO2 emissions from cell production will be reduced up to 60% through the partial use of recycled lithium, cobalt and nickel material, as well as renewable energy for production.
The expansion of BEV and battery-cell production in the Spartanburg area will lead to the creation of new supply chains, new networks for sub-suppliers and new jobs throughout the entire region, Zipse says.
BMW Group announced earlier that four factories producing next-generation battery cells will be built by partners in Europe and China.
Spartanburg currently produces li-ion battery modules for the two plug-in hybrid-electric vehicles built at the plant, the BMW X3 xDrive30e and BMW X5 xDrive45e. In 2021, 70,000 PHEVs were built there.
BMW established the Spartanburg plant 30 years ago and it began producing vehicles two years later. Since then, the factory has become the global center of competence for BMW Sports Activity Vehicles, the automaker’s terminology for CUVs.
The plant currently represents an investment of $12 billion, employs more than 11,000 people and has production capacity of up to 450,000 vehicles annually. To date more than 6 million BMW vehicles have been built in the U.S. for domestic and global markets. BMW says this has made it the largest automotive exporter from the U.S. by value for the past eight years.
The Spartanburg plant currently produces 11 models including the BMW X3, X4, X5, X6 and X7 Sports Activity Vehicles, four BMW M models and two PHEVs. Production of the all-new hybrid-electric BMW XM (pictured, above) will begin later this year.
The plant is supported by more than 300 suppliers in the U.S., including over 40 direct Tier 1 suppliers in South Carolina alone.
BMW Group has set an initial target to reduce CO2 emissions by 40% per vehicle by 2030.
Envision AESC is a leading Japanese electric-vehicle battery technology company. Under its multi-year partnership with BMW Group it will supply battery cells for the German automaker’s next-generation BEVs.
Envision AESC’s 30-GWh battery manufacturing plant in South Carolina will be powered by 100% net-zero carbon energy. Work is underway to finalize a site close to BMW’s vehicle production and battery assembly facilities.
The Japanese company will supply battery cells with 20% more energy density, faster charging speeds and an extended range of up to 30% for new BEVs produced in Spartanburg by 2030.
