BMW is holding firm to plans to add fully electric versions of the X5 and X7 to its U.S. production portfolio, with both models set to be built at the company’s Spartanburg vehicle assembly plant in South Carolina, despite the turmoil surrounding the dramatically altered import tariff conditions announced by U.S. President Donald Trump.
The move, confirmed to Wards, forms part of a broader electrification strategy that will see the German automaker invest up to $1.7 billion into its North American manufacturing operations, including $1 billion to upgrade the Spartanburg plant for battery-electric-vehicle production and $700 million for a new battery assembly facility located in nearby Woodruff.
The new X5, internally designated G65, will enter production in August 2026.
While the fifth-generation SUV model remains based on BMW’s cluster architecture (CLAR) platform, the rival to the Audi Q7 and Mercedes-Benz GLE will adopt several key technologies from the company’s Neue Klasse BEV initiative to be kicked off later this year with the introduction of the new iX3, including an 800V electric architecture, sixth-generation cylindrical battery cells and a new digital cockpit with a so-called panoramic head-up display system.
The all-electric variant of the X5, set to be badged iX5, will be launched alongside gasoline, diesel and plug-in hybrid versions, reflecting BMW’s continued multi-powertrain approach.
The iX5’s electric drivetrain promises a significant leap in performance and efficiency, promising 20% higher energy density, a 30% increase in both range and charging speed and a 40% reduction in energy loss compared to current technology used by BMW. Dual-motor, 4-wheel-drive xDrive configurations are expected for all iX5 models, including a high-performance iX5 M70, with a hydrogen-powered fuel cell variant also scheduled to follow in 2028.
The X5’s larger sibling, the BMW X7, will follow a similar path. The second-generation model, codenamed G67, is due to be revealed in 2027, with production slated to begin later that year.
As with the X5, the new X7 will continue on the CLAR platform while integrating Neue Klasse elements. The electric version, known as the iX7, will be BMW’s first zero-emissions fullsize luxury SUV.
A flagship iX7 M70 with more than 800 hp is planned, while a separate ALPINA-tuned version of the electric SUV, known internally under the G69 codename, is reportedly in the pipeline with output nearing 900 hp.
Like the X5, the X7 range will also retain internal-combustion-engine options in selected markets, including a 4.4L twin-turbo V-8 and inline-6-cyl. gasoline units for North America.
Spartanburg, BMW’s largest global production site, is central to the brand’s strategy to electrify its SUV lineup. The factory has long served as the manufacturing base for X models destined for both North America and export markets. With the addition of electric variants of the X5, X6 and X7 – alongside the existing plug-in hybrid production – BMW is re-tooling Spartanburg as a major electrified vehicle hub. The company has stated it plans to produce at least six fully electric models in the U.S. by 2030.
The shift is supported by the construction of the new Woodruff battery plant, which will supply sixth-generation battery packs. Developed in partnership with Envision AESC, the Woodruff facility is designed to meet BMW’s sustainability and performance targets, using locally sourced materials wherever possible.
Plans for the introduction of the iX5 and iX7 signal a deliberate evolution rather than a sudden break from existing model lines. Both are conceived to provide continuity in design and practicality for existing customers while incorporating BMW’s latest electric-vehicle technology. Details about the successor to today’s X6, the G66 as it is codenamed, remain under wraps. However, the CLAR-based model looks likely to follow the example of its more practical X5 and X7 siblings with both ICE and full-electric drivetrain options – the latter in a new iX6 model, with production set to begin in 2028.
