The company plans to invest $1bn in expanding Spartanburg facility in South Carolina to prepare for the production of electric vehicles.
In an interview with Reuters, BMW Group board of management chairman Oliver Zipse said: “It’s the biggest single investment we’ve done so far.”
Zipse also said that an agreement was signed to source lithium-ion battery cells from Chinese renewable energy group Envision Automotive Energy Supply Corporation (AESC).
Envision AESC will construct a new battery cell plant in the US state with an annual capacity of up to 30GWh to supply BMW.
Encompassing over 1 million ft2, the new Woodruff facility will produce next generation batteries for fully electric vehicles.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
This facility will create around 300 new jobs.
Spartanburg facility was set up three decades ago, and represents an investment of almost $12bn over these years. It employs over 11,000 people, and has an annual production capacity of up to 450,000 vehicles.
It currently produces 11 models, including two plug-in hybrid electric models.
The company plans for production of the all-new hybrid-electric BMW XM at the Spartanburg facility to begin later this year.
BMW Group has already announced that four additional battery cell factories will be built in Europe and China to meet its demand for next generation battery cells. The cell factories will be constructed by the company’s partners and each facility have an annual capacity of up to 20GWh.
The company plans to develop a minimum six fully electric models by 2030 in the country.
Image: BMW plans to invest $700m to build a high-voltage battery assembly facility near Woodruff, South Carolina. Credit: BMW Group.