BMW has committed to turning its South Carolina factory into an electric vehicle manufacturing hub.
It was revealed just a few days ago BMW Group will move production of the Mini Coopers EV series to China and Germany because its facilities in Oxford are “not for electric vehicles”.
However, the Group is taking a different approach across the United States, where it will invest US$1.7 billion (AU$2.7 billion) to build at least six models. electricity by 2030 in Spartanburg, South Carolina.
It has also confirmed that it will build a new battery assembly facility nearby as part of the plan. The group has announced a partnership with Envision AESC, which will build a plant in South Carolina to exclusively supply BMW with custom round lithium-ion cells.
BMW and Envision claim the next-generation battery will be 20% more energy dense, charge 30% faster and increase the range by 30% compared to current units, while battery production will generate 60% less CO2 emissions.
The plant will have a capacity of up to 30GWh, which means it will be capable of producing batteries for about 300,000 electric cars per year.
The partnership with Envision follows an announcement from BMW earlier this year will cooperate with Chinese battery suppliers CATL and EVE for cell production in China and Europe.
US$1 billion (AU$1.6 billion) in new infrastructure investment will be used to bring the Spartanburg Plant up to EV standards.
The plant currently produces 11 vehicles, including the X5 and X7, sold in Australia. Currently, only two of the cars the company produces are plug-in hybrids; the rest are pure internal combustion models.
The remaining US$700 million ($1.12 million) will be used to build the battery assembly site in Woodruff, South Carolina.
BMW President Oliver Zipse said the South Carolina plant will become the ‘Home of Battery Electric Vehicles’, and the ‘key driver’ of BMW’s electrification plans globally.
These new investments will mean that BMW will be able to purchase and assemble EV batteries, as well as manufacture all vehicles in a single state to reduce their environmental impact.
U.S. production of the BMW EV will also guarantee the vehicle is subject to a $7500 tax credit (AU$11,968).
As part of the Inflation Reduction Act signed by US President Joe Biden in August, only electric vehicles made in the US are eligible for the credit.
The law also requires 40% of critical battery minerals to be sourced from the United States or its free trade partners by next year and 80% by 2027.
Comments on this request are reported by ReutersMr. Zipse said the US “should have a regulation that is not completely unrealistic” and warned, “It would be a disaster if you stop developing the industry”.
The Biden administration on Wednesday announced it would award $2.8 billion in funding to boost U.S. production of EV batteries and the minerals it uses in a move to reduce dependence on Chinese raw materials.
“China currently controls much of the key mineral supply chain, and the lack of mining, processing, and recycling capacity in the United States could hinder the development and adoption of electric vehicles, leaving the United States dependent on Unreliable foreign supply chains,” the White House said.
