BMW Group has been planning for a while to expand its business in the United States. For this purpose, BMW Group has planned to invest a tremendous amount to cover more ground in the country.
$1.7 Billion to be invested in EVs
According to the officials at the BMW Group, they aim to invest a total of $1.7 billion in the United States. The money would be invested in the production of electric vehicles in the United States.
In addition to the electric vehicles, BMW Group wants to produce batteries for electric vehicles. The BMW officials made the announcement surrounding the expansion of their business on Wednesday.
In the announcement, BMW Group also communicated the investment structure. As per the officials, they plan on investing $1 billion out of the total investment amount into the production of EVs.
The $1 billion amount would be spent for the advanced development and upgradation of the South Carolina-based Spartanburg factory.
The remainder would be used for the manufacturing and assembly of EV batteries. BMW Group has confirmed that the $700 million would be allocated to the Woodruff-based facility for battery assembly.
At the Woodruff battery-assembly facility, they plan on manufacturing high-voltage batteries.
Big Plans Ahead Until 2030
According to the officials, they have plans to launch six different models of BMW electric vehicles in the United States. They plan on launching these models in the country by 2030.
At the moment, the Spartanburg facility is manufacturing BMW SUVs and BMW “X” models. Apart from the electric car models, the facility also produces lithium-ion battery modules for hybrid EVs.
BMW has announced that the production of the BMW XM (hybrid electric vehicle) would be their first project. BMW Group is aiming to produce the mentioned model by the end of 2022.
Going forward, BMW wants to use the same facility for the production of all-electric vehicles in the form of six different models. The target is to produce these vehicles by the end of 2030.
BMW to Buy Battery Cells from Envision AESC
Apart from self-producing the EV batteries, BMW Group has also revealed that it is considering the purchase of Envision AESC. It is a company based in Japan that produces battery cells.
Once BMW buys Envision AESC, it will let it operate independently and would open another facility in South Carolina. Then the particular facility would be responsible for providing batteries to the BMW plants.
The announcement and the plans shared by BMW have helped it gain the trust of the shareholders. In the recent trading session, the share prices for BMW have risen by 0.92%.