BMW’s New Electric Vehicles Are Expected To Be A Multibillion..

BMW has plans of investing $1.7 billion in its U.S. operations to build electric vehicles and batteries, as indicated by the organization on Wednesday October 19.

The investment will incorporate $1 billion for production of EVs at BMW’s South Carolina plant, and $700 million for another battery-assembly facility in the state.

BMW also announced an arrangement to buy battery cells from Japan-based AESC, which will build a new battery cell manufacturing plant in South Carolina.

The German automaker hopes to release something like six completely electric models in the U.S. by 2030.

The Spartanburg facility, where the investment announcement took place, currently produces BMW “X” SUVs and lithium-ion battery modules for its two plug-in hybrid electric vehicles. Production of the new hybrid-electric BMW XM is expected to begin later this year.

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The envision AESC facility is supposed to have yearly production limit of 30 gigawatt hours — in accordance with plans of different automakers and battery providers for U.S. plants, BMW said.

The new plant is expected to be a multibillion investment, and the location for the facility is expected to be announced before the year’s over.

In April 2022, the organization announced plans to burn through $2 billion to build a second U.S. plant in Kentucky. Meanwhile, its first plant in Tennessee supplies Nissan Motor.

BMW has previously announced four extra battery cell plants will be built in Europe and China to satisfy its need for cutting edge battery cells.

The announcements are the latest of several recent multibillion-dollar investments in U.S production of EVs and batteries amid tightening emissions regulations and legislation to encourage domestic manufacturing.

Automakers are also facing stricter sourcing guidelines that are part of the Inflation Reduction Act and the United States-Mexico-Canada Agreement, formerly the North American Free Trade Agreement. Both policies increased requirements for domestically sourced vehicle parts and materials to avoid tariffs or qualify for financial incentives.