BMW Pronounces $1.7 Billion Funding in US EV Manufacturing


BMW is making an enormous funding in US manufacturing to the tune of $1.7 Billion {dollars}. The aim is to set-up the Spartanburg Plant to start a transition into EVs and create additional manufacturing flexibility. The impact will likely be no less than six totally electrical BMW fashions constructed within the US by 2030.

Moreover Envision AESC will a brand new battery cell plant in South Carolina to produce the Spartanburg plant with Tesla-like spherical Lithium-Ion cells for BMW’s subsequent era automobiles. The $1 Billion funding within the plant will put together it for the long run on the model seems to be to transition to EVs by the early 2030s.

Moreover BMW is making a $700 Million funding to construct a brand new high-voltage battery meeting facility in woodruff, South Carolina increasing BMW Group manufacturing footprint within the state. BMW hasn’t talked about any new jobs related to this transfer nevertheless it’s protected to say this will likely be an enormous enlargement in each jobs and capabilities of BMW’s US presence.

BMW EV Production

Official Launch: BMW Pronounces $1.7 Billion Funding in BMW EV Manufacturing within the US

The BMW Group continues the roll-out of its electromobility plan with a brand new funding within the U.S. to broaden Plant Spartanburg and the corporate’s manufacturing footprint within the U.S.  BMW Group Chairman of the Board of Administration, Oliver Zipse, introduced at present a $1.7 billion funding in its U.S. operations, together with $1 billion to organize for the manufacturing of electrical automobiles on the firm’s current U.S. manufacturing facility in South Carolina, and $700 million to construct a brand new high-voltage battery meeting facility in close by Woodruff, SC.  By 2030 BMW Group will construct no less than six totally electrical fashions within the U.S. 

Zipse was joined at present at Plant Spartanburg by South Carolina Governor Henry McMaster, Secretary of Commerce Harry Lightsey III, Chairman of Spartanburg County Council Financial Growth Committee David Britt, and Woodruff, SC Mayor Kenny Gist as he additionally introduced an settlement to supply subsequent era lithium-ion battery cells from Envision AESC, which can construct a brand new plant within the state.

“For many years, Plant Spartanburg has been a cornerstone of the worldwide success of the BMW Group. It’s he residence of the BMW X fashions which might be so widespread all around the world. Going ahead, it’s going to even be a serious driver for our electrification technique, and we are going to produce no less than six totally electrical BMW X fashions right here by 2030. Meaning: The ‘House of the X’ can be turning into the ‘House of the Battery Electrical Car’,” mentioned Zipse on Wednesday. “As well as, we will showcase BMW Group’s ‘native for native’ precept: Our newly developed sixth era battery cells, which have been particularly designed for the following era electrical automobiles, will likely be sourced right here in South Carolina – the place X goes electrical.”

Envision AESC Battery Cell Plant in SC to Provide Plant Spartanburg. 
According to the precept of “native for native,” the BMW Group goals to buy battery cells for its electrical automobiles the place manufacturing takes place. The corporate has discovered a associate in Envision AESC, which can construct a brand new battery cell manufacturing facility in South Carolina, to produce Plant Spartanburg.  Envision will produce newly developed spherical lithium-ion battery cells, which have been particularly designed for the sixth era of BMW eDrive know-how and will likely be used within the subsequent era electrical automobiles. The annual capability of the battery cell manufacturing facility will likely be as much as 30 GWh.

The brand new battery format will enhance power density by greater than 20 p.c, enhance charging velocity by as much as 30 p.c and improve vary by as much as 30 p.c.  On the identical time, CO2 emissions from cell manufacturing will likely be lowered by as much as 60 p.c by the partial use of secondary lithium, cobalt, and nickel materials, in addition to renewable power for manufacturing. 

The cooperation with Envision AESC is a vital step within the BMW Group’s plan to strengthen its regional provide chains. The enlargement of electrical car manufacturing together with an area battery cell manufacturing facility will result in the creation of latest provide chains, new networks for sub-suppliers, and new jobs all through your complete area.

BMW Group has already introduced that 4 further battery cell factories will likely be inbuilt Europe and China to fulfill its demand for subsequent era battery cells. The cell factories are being constructed by companions and can every have an annual capability of as much as 20 GWh.

Elevated Funding and Expanded Manufacturing Capability in SC.
Of the brand new $1.7 billion funding introduced at present, $700 million will likely be used to construct a brand new high-voltage BMW battery meeting middle in Woodruff, SC, close to Plant Spartanburg.  The brand new facility will embody over 1 million sq. ft. and produce subsequent era batteries for totally electrical automobiles, and 300 new jobs will likely be created on web site.  

Plant Spartanburg presently produces lithium-ion battery modules for the 2 plug-in hybrid electrical automobiles constructed on the plant, the BMW X3 xDrive30e and BMW X5 xDrive45e. In 2021, almost 70,000 electrified BMWs have been constructed on web site. The positioning in Woodruff may also leverage the expertise and experience developed in Plant Spartanburg’s current operations on the new facility.

“BMW’s sustained and impactful presence in South Carolina demonstrates the facility of partnership and shared dedication to our state’s automotive business success,” mentioned Governor McMaster. “With at present’s announcement of a $1 billion enlargement to Plant Spartanburg for manufacturing electrical automobiles in addition to $700 million for a brand new plant in Woodruff to assemble battery models, the highway to the long run is right here. And I applaud BMW on serving to prepared the ground.”

BMW Group Plant Spartanburg.
Plant Spartanburg was established 30 years in the past and commenced producing automobiles two years later.  Since then, the plant has change into the worldwide middle of competence for BMW Sports activities Exercise Automobiles and a crucial element of the corporate’s international manufacturing community.  The plant presently represents an funding of almost $12 billion, employs greater than 11,000, and has an annual capability of as much as 450,000 automobiles.  To this point greater than six million BMW automobiles have been constructed within the U.S. – for the U.S. and international markets.  Based mostly on this power, BMW has been the biggest automotive exporter from the U.S. by worth for the previous eight years.

Plant Spartanburg presently produces 11 fashions together with the BMW X3, X4, X5, X6 and X7 Sports activities Exercise Automobiles, 4 BMW M fashions and two plug-in hybrid electrical fashions.  Manufacturing of the all-new hybrid-electric BMW XM will start later this yr. 

The plant is supported by greater than 300 suppliers within the U.S., together with over 40 direct tier 1 suppliers in South Carolina alone.

“It is a essential step for Plant Spartanburg as we proceed our legacy of manufacturing high-quality automobiles, and construct on the success of the final 30 years,” mentioned Robert Engelhorn, President and CEO, BMW Manufacturing Co.  “With this newest funding, we futureproof our operations and put together the plant for electrification and new applied sciences, making certain each the long-term success of our firm and our place as a pretty and viable employer within the state of South Carolina.” 

Ongoing Dedication within the U.S.
Along with gross sales and advertising and marketing operations, the BMW Group footprint within the U.S. consists of almost 30 areas in 12 totally different states, together with a complicated design studio, a know-how analysis and improvement middle, and a enterprise capital fund in California, BMW Group Monetary Companies, and BMW Manufacturing Company, which operates Plant Spartanburg in South Carolina.  The BMW Group vendor community consists of almost 650 independently owned BMW, MINI, Rolls-Royce and BMW Motorrad sellers nationwide.  Taken collectively, the BMW Group’s operatons within the U.S. straight and not directly present and help greater than 120,000 jobs within the U.S. and has contributed $43.3 billion to the U.S. financial system. 

“Expertise Openness” and Buyer Targeted Flexibility.
BMW Group is clearly targeted on a sustainable future and shares widespread ambition within the U.S. with regard to local weather objectives and the discount of greenhouse gasoline emissions.  On the identical time, the corporate is following a path of “know-how openness” to supply a selection of totally electrical, plug-in hybrid electrical, and extremely environment friendly inside combustion choices to its clients in assembly their various wants in vastly totally different geographies throughout the nation.  BMW Group is dedicated to fulfilling its aim of constructing a minimal of fifty% of its international gross sales battery electrical automobiles by 2030.

360-Diploma Method.
BMW Group has additionally set an preliminary goal to scale back CO2 emissions by 40% per car by 2030.  As BMW Group works in the direction of the aim of local weather neutrality, the corporate is targeted on the discount of CO2 emissions all through a car’s total life cycle.      

  • Design and Engineering: Past merely electrifying its product portfolio, BMW Group begins the design and engineering section of car improvement with a ‘secondary first’ strategy, in order that presently on common almost 30 p.c of supplies utilized in BMW Group automobiles are recycled or reused.  In the long term, the “secondary first” strategy goals to extend this determine to 50 p.c.
  • Provide Chain and Procurement: BMW Group has been actively concerned for a few years in initiatives to develop requirements for accountable uncooked materials extraction and promote compliance with environmental and social requirements for uncooked materials extraction by certification of mines. The cobalt and lithium used as uncooked supplies for the brand new era of BMW battery cells will likely be sourced from licensed mines which permits the corporate to retain full transparency over extraction strategies and ensures accountable mining.
  • Car Manufacturing: BMW Group’s international manufacturing community additionally depends on renewable power comparable to photo voltaic, wind, and hydroelectric energy within the manufacturing section of its automobiles. All the firm’s manufacturing websites have been web CO2 impartial by offsets since 2021.
  • Car Use Part: BMW Group can be working to make sure that the electrical energy generated to cost battery electrical automobiles is completed so sustainably.  For instance, partnerships with dairy farms in California cut back greenhouse gasoline emissions by capturing methane gasoline and reworking it into renewable power, which is exported to the facility grid.  The corporate additionally operates a pilot program known as ChargeForward within the San Francisco Bay Space which makes it potential for homeowners to cost their automobiles with as a lot renewable power as potential.
  • Car Recycling & Submit-Life: From the beginning BMW Group automobiles are designed with recycling in thoughts, thereby bettering the likelihood for elements to be recycled or reused.  The corporate has already demonstrated the power to recuperate greater than 90% of the fabric from high-voltage batteries and has  roughly 3,000 assortment factors worldwide for the recycling of end-of-life automobiles.


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