BMW to Invest $1.7 Billion in US Electric-Car Production

    By Kim Richters 
 

German luxury car maker BMW AG said Wednesday that it will invest $1.7 billion in its operations in the U.S. as it prepares to produce battery-electric vehicles in the country.

The auto maker said it has earmarked $1 billion to adapt its existing manufacturing plant in Spartanburg, South Carolina, for the production of battery-electric vehicles. The site will become an important driver for the company's electrification strategy and BMW plans to make at least six fully-electric models there by 2030, it said. In 2021, the U.S. market accounted for around 20% of BMW's revenue.

In addition, the car maker will build a new high-voltage battery-assembly plant in Woodruff, South Carolina, for $700 million, creating around 300 new jobs, it said.

BMW has also agreed to source battery cells for the Spartanburg plant from Envision AESC, which will build a new factory in South Carolina, it said. The battery specialist also has partnerships with BMW peers such as Mercedes-Benz Group AG.

BMW continues to target at least 50% of its global sales to be battery-electric vehicles by 2030 but has said it could reach this goal earlier. In 2021, 4.1% of BMW's global car sales were fully electric vehicles and it plans to more than double the share this year.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

October 19, 2022 11:14 ET (15:14 GMT)

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