German automaker BMW announced plans to scale up production of US electric vehicles in collaboration with battery manufacturer Envision.
BMW Group reportedly plans to invest $1.7 billion in the US to develop and build electric vehicles and batteries. According to the German automaking giant, the investment breakdown will see $1 billion go towards producing electric automobiles at its South Carolina facility. The remaining $700 million will be used to fund a new battery assembly plant in the same state. Furthermore, BMW also announced a deal that entails the car manufacturer purchasing battery cells from Japan-based Envision AESC. Pursuant to this deal, the EV lithium-ion battery maker will also build a new facility in South Carolina to supply the BMW plants.
BMW says it intends to produce no less than six fully electric vehicle models in the US by 2030. Speaking on the company’s EV agenda, Oliver Zipse, Chair at the world-renowned automobile manufacturer, said in a release:
“Going forward, it will also be a major driver for our electrification strategy, and we will produce at least six fully electric BMW X models here by 2030.”
BMW made the investment announcement regarding electric vehicles at its Spartanburg facility. This is where the prominent automobile maker currently produces BMW “X” SUVs. In addition, the company also produces lithium-ion battery modules for its two plug-in hybrid electric vehicles at the same plant. According to BMW, production of its new hybrid-electric BMW XM will commence later this year. Furthermore, the Munich-based automaker also stated plans to build four additional battery cell factories in Europe and China. This is to adequately cater to the company’s growing demand for next-generation battery cells.
BMW Electric Vehicles to Likely Benefit from Envision AESC Multibillion Plant Investment
A spokeswoman for Envision AESC, BMW’s operational partner on its electric vehicle initiative, also weighed in following the announcement. According to her, Envision AESC’s upcoming supporting facility will be a multi-billion investment. Although the spokeswoman of the EV battery-manufacturing firm declined to provide a specific amount on this, she was more forthcoming on production capacity. According to her, the Envision AESC facility will have an annual production capacity of 30 gigawatt hours. BMW says this will also be in line with the plans of other car manufacturers and battery suppliers for US facilities.
Reports suggest that it is still unclear where Envision AESC will set up shop for its South Carolina battery facility. However, the company’s spokeswoman stated that it would announce this by the end of the year.
Envision AESC Eyes American Operational Expansion
Envision AESC’s first battery-producing plant is based in Tennessee and supplies Nissan Motors, another popular automaker. Back in April, the battery manufacturer announced plans to spend $2 billion to build a second US plant in Kentucky. Envision AESC actively seeks to grow its automobile partnerships. In fact, the company is reportedly in ongoing discussions with several manufacturers and partners in the automotive industry.
Envision AESC’s stated goal comes amid stricter sourcing guidelines currently defining the auto-manufacturing space. These guidelines form part of the Inflation Reduction Act and the United States-Mexico-Canada Agreement, formerly called the North American Free Trade Agreement.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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