BMW Puts $1.7 Billion Down on U.S. Manufacturing for Six New Electric Vehicles
With a new invested capital of $1.7 billion in the automaker’s U.S. manufacturing operations, BMW is preparing for an onslaught […]
With a new invested capital of $1.7 billion in the automaker’s U.S. manufacturing operations, BMW is preparing for an onslaught of electric vehicle production over the coming few years. This investment should support the introduction of at least six new all-electric vehicles as well as two new battery production facilities.
New BMW EV SUVs should be eligible for some of the government incentives offered under the recently passed Inflation Reduction Act legislation, which mandates North American sourcing and production. It is because battery cells and battery packs will now be manufactured domestically, and the vehicle will be assembled in the United States.
New Battery Plants
High-voltage battery packs for BMW’s upcoming “Neue Klasse” car platform will be put together in a new $700 million facility close to Woodruff, South Carolina, which is expected to create at least 300 new local employment. The sixth-generation round battery cells for BMW will be supplied to the new plant from another new cell production facility run by BMW partner and Japanese battery company Envision AESC, which is only currently stated to be under construction somewhere in South Carolina.
The project will be able to produce up to 30-gigawatt hours of electricity annually, which should equal hundreds of thousands of BMW electric vehicles. The chemistry of the latest generation of battery cells employs more nickel, silicon, and less cobalt, which results in a 20% improvement in energy density, a 30% increase in range, and a 30% reduction in charge times.
BMW’s most recent packaging assembly techniques reportedly reduced pack prices by up to 50%. At the same time, the new cells will be built with some recycled cobalt, lithium materials, and nickel, which are expected to minimize assembly-related carbon emissions by up to 60%. For its battery and EV production, BMW will also make investments in renewable energy sources.
Six new EVs in the United States by 2030
At BMW’s current U.S. manufacturing facility in South Carolina, the additional $1 billion will be used to make preparations for the production of new electric vehicles. BMW’s upcoming lineup of so-called Neue Klasse EVs has yet to arrive, despite the introduction of the all-electric i7 and i4 sedans together with the new iX SUV.
Around 2025, a sedan and an SUV based on the brand’s conventional 3 Series sedan and X3 SUV are expected to debut on the next-generation EV platform. These vehicles may be referred to as the i3 and iX3, respectively. The “iX5” midsize SUV, according to Automotive News and AutoForecast Solutions, might go into production in 2026, with the “iX7” and “iXM” SUVs following in 2027 and 2030, respectively.
The investment supports BMW’s decision to purchase battery cells rather than attempt to participate in their production, which contrasts with Tesla Inc.’s and Volkswagen AG’s efforts. With its “Neue Klasse,” or New Class, of EVs constructed on specialized electric platforms beginning in 2025, BMW aims to gain ground in a sector that is becoming more and more competitive.
The construction of those vehicles will maximize the number of materials that can be recycled for use in future automobiles and increase revenue from drivers who book digital features. According to Zipse, the business plans to boost EV production at the factory by 10% every two years, to have 50% of its entire auto manufacturing made up of EVs by 2030.