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BMW’s Mega Investment in US Electric Vehicle Production

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On October 11, 2023, BMW Group announced that it had begun constructing an electric vehicle battery factory in Woodruff, South Carolina, USA. BMW Group will invest $1 billion in preparing for electric vehicle production at its Spartanburg plant in the USA and another $700 million to establish a battery assembly factory in Woodruff, totaling an investment of $1.7 billion in its U.S. operations.

BMW Group plans to produce at least six models of electric vehicles in the USA by 2030. The Woodruff factory will be completed by 2026 and have the 6th generation batteries used in BMW electric vehicles. It is expected to create over 300 jobs, with the potential for further expansion.

BMW Group receives its electric vehicle battery cells from its partner AESC. AESC is setting up a 30GWh battery cell factory in Florence, South Carolina, with BMW as its first customer. AESC will produce a newly developed cylindrical lithium-ion battery cell designed for the 6th generation BMW ‘eDrive’ technology. The battery cells produced at the AESC factory in Florence will be shipped to the Woodruff factory and ultimately installed in the BMW SUV X series electric vehicles.

Meanwhile, Chinese battery manufacturer SVOLT has also signed a contract to supply cylindrical cells for BMW’s electric vehicles. Production will start in 2027, with a planned capacity of 90 GWh.

SVOLT will become the third supplier of cylindrical cells for BMW’s Neue Klasse electric vehicles.

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