BMW Finally Making the Shift to Electric

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In an effort to comply with governmental regulations, BMW will be investing $1.7 billion in U.S. production facilities that will begin mass-producing electric vehicles by 2021. The move will support approximately 1,000 new jobs at the company’s Spartanburg, South Carolina factory and could include hiring more workers as well as suppliers in the state. This announcement comes just one day after GM announced that it would be laying off nearly 15,000 workers and closing five plants due to lagging sales of gas-powered vehicles.

BMW Group is to invest $1.7 billion in its U.S. businesses to advance the development of electric vehicles and batteries, the company announced on Wednesday.

The investment will be split into two parts: $700 million for a new high-voltage battery assembly facility in Woodruff, a neighbouring city, and $1 billion for the carmaker to outfit its present Spartanburg factory in South Carolina to produce EVs.

The German automaker intends to produce at least six all-electric cars in this country by the year 2030. Lithium-ion battery modules for BMW’s two plug-in hybrid electric vehicles are currently manufactured in the Spartanburg facility where the investment announcement was made alongside BMW “X” SUVs. Production of the new hybrid-electric BMW XM is slated to begin later this year.

According to BMW Chair Oliver Zipse, it will eventually operate as a crucial driver for our electrification plan, and by 2030, we intend to build at least six all electric BMW X cars here.

BMW and the Japanese business Envision AESC struck a deal to purchase battery cells on Wednesday. Envision AESC will build a new battery cell factory in South Carolina to serve the BMW manufacturing.

The 30-gigawatt-hour yearly production capacity claimed by BMW for the Envision AESC facility is commensurate with projections made for American factories by other automakers and battery manufacturers.

A representative for Envision AESC said the new facility is expected to require a billions dollar investment but would not provide a particular sum. She noted that the site of a facility should be known before the end of the year.

An Envision AESC spokesperson who declined to provide a particular amount said that the new factory is estimated to be a multibillion dollar investment. She said that a facility’s location had to be made public by the end of the year.

In April, the company announced plans to spend $2 billion in Kentucky to build a second factory there. Nissan Motor’s first Tennessee location provides supplies. The company’s other major client is BMW in the US, and negotiations are reportedly ongoing with “a number of global vehicle manufacturers and partners.”

In order to satisfy its demand for next-generation battery cells, BMW has already announced the construction of four new battery cell plants in China and Europe.

The announcements are the most recent in a string of recent multibillion-dollar investments in American EV and battery manufacture, which have been made in response to stricter pollution laws and legislation that supports local manufacturing.

The Inflation Reduction Act and the United States-Mexico-Canada Agreement, previously the North American Free Trade Agreement, both have harsher sourcing regulations that automakers must comply with. In order to avoid tariffs or be eligible for cash incentives, both programmes upped the standards for locally sourced automotive components and materials.

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