The German manufacturer also announces the signing of a partnership with the Chinese battery manufacturer Envision AESC. (Photo: 123RF)
Berlin — German automaker BMW on Wednesday announced a US$1.7 billion investment in the United States to produce batteries and electric vehicles in the country.
“BMW continues to deploy its plan towards electromobility (…), indicated the group in a press release specifying that this investment would be mainly devoted to “preparing the production of electric cars” in the factory in Spartanburg, South Carolina.
With a production of 1,500 vehicles from the BMW X range – a high-end all-terrain vehicle mainly with petrol or diesel engines – this plant is currently BMW’s largest in the world.
The German manufacturer also announces the signing of a partnership with the Chinese battery manufacturer Envision AESC, which “will build a new battery cell factory” in the region to supply Spartanburg.
BMW is aiming for a capacity of 30 GW per year.
The goal for the German group is to “manufacture six fully electric models in the United States by 2030”.
“The Spartanburg plant (…) will become a major driver of our electrification strategy,” company CEO Oliver Zipse said in a statement.
This investment is part of an all-out electric transition plan for BMW and the whole of German industry.
Pioneer of battery-powered cars with the i3, the high-end brand has since fallen behind, especially its American competitor Tesla.
The group therefore indicated in March that it was aiming for two million electric models on the roads by the end of 2025, promising 13 new electric models in three years.
This investment in the United States is also part of a tense commercial context between Washington and the Europeans, around American subsidies on electric vehicles.
EU officials, as well as Paris and Berlin, are concerned regarding the tax credits decided this summer by the Biden administration in favor of vehicles produced in the United States. They fear that this policy will divert large groups from Europe in favor of investments in the United States.