In order to build electric vehicles and batteries, BMW Group plans to invest $1.7 billion in its U.S. operations, the company said on Wednesday.
The investment will consist of $700 million for a new high-voltage battery-assembly facility in the nearby Woodruff and $1 billion to prepare the automaker’s existing Spartanburg factory in South Carolina to produce Electric Vehicles.
By 2030, the German automaker plans to manufacture at least six entirely electric vehicles in the United States. At the Spartanburg facility where the investment announcement was made, lithium-ion battery modules for BMW’s two plug-in hybrid electric vehicles are currently produced alongside BMW “X” SUVs. Production of the new hybrid-electric BMW XM is anticipated to start later this year.
The Japanese company Envision AESC will construct a new battery cell factory in South Carolina to supply the BMW plants.
BMW announced a deal to buy battery cells on Wednesday.