BMW has announced a significant investment of $1.7 billion in its US electric vehicle (EV) operations, aiming to boost production capacities following the latest declaration from an automaker to expand domestic manufacturing of electrical cars.
BMW aims to accelerate its pace further after establishing a fresh US electric vehicle supply in the third quarter, with 4,337 units delivered.
The United States has reportedly reached a milestone 6% electric vehicle (EV) market share in the third quarter, marking significant progress toward its ambitious goal of achieving a 50% share by 2030. As new federal incentives take effect and consumer preferences shift towards electric vehicles, the demand is poised to accelerate from this point onwards?
Following the successful retirement of the BMW i3, the company’s inaugural “i-series” electric vehicle, BMW is now targeting broader market segments with its latest electrified offerings, including the highly anticipated BMW iX, a sporty and versatile electric SUV designed to appeal to a wider range of consumers. The BMW i7, set to arrive at US dealerships by the end of this year, marks a milestone as the company’s first fully electric 7-series model and its largest battery-electric vehicle yet.
By 2030, BMW intends to capitalise on the rapidly growing electric vehicle market by launching at least six pure-electric models across various segments.
Following the passage of the Inflation Reduction Act in August, BMW has revealed plans to invest in US-based electric vehicle manufacturing, capitalizing on the newly offered incentives for domestic production.
BMW invests $1.7 billion in its electric vehicle manufacturing facility within the United States.
To drive manufacturing expansion and capitalize on the surging demand for electric vehicles (EVs) within the United States, BMW plans to invest a substantial $1.7 billion in its domestic operations.
As part of the investment package, $1 billion has been earmarked to enhance BMW’s South Carolina Plant Spartanburg, where currently 11 BMW models are manufactured. As BMW’s CEO, Oliver Zipse, underscores the pivotal role that power will occupy in its electrification strategy going forward, emphasizing that it will be instrumental in propelling the company’s efforts to become a leader in the electric vehicle (EV) sector.
For decades, Plant Spartanburg has stood as a pillar of global excellence for the BMW Group, its reputation for quality and efficiency unmatched. The BMW X family boasts a range of models that have gained immense popularity globally. As we move forward, this development will also significantly accelerate the adoption of our electrification strategy, allowing us to manufacture at least six fully electric BMW X models locally by 2030. The ‘House of the X’ will metamorphose into a revolutionary hub focused on battery-electric vehicles.
Meanwhile, $700 million is allocated to establish a state-of-the-art high-voltage battery manufacturing facility in Woodruff, North Carolina. The state-of-the-art battery facility will span more than one million square feet. The company is set to create around 300 new jobs by producing “next-generation batteries” for future BMW electric vehicle models.
BMW aims to acquire battery cells where manufacturing occurs, collaborating with Envision AESC to build a state-of-the-art battery cell production facility with an annual capacity of 30 gigawatt-hours.
The automaker asserts that its novel battery cell design will significantly boost vitality density by more than 20%, simultaneously accelerating charging speeds and increasing range by up to 30%. Meanwhile, the integration of renewable energy and mineral recycling initiatives has the potential to reduce carbon emissions by up to 60% effectively.
According to BMW, its US operations support more than 120,000 US jobs and generate a significant impact of $43.3 billion on the economy in the United States.
Electrek’s Take
As luxury car brands, both newcomers and established players, continue to zero in on the lucrative US market, BMW’s recent transfer demonstrates its commitment to this vital sector. Luxurious automobiles commanded a 17.8% share of the market within the third quarter, a significant increase from just over 14% in Q3 2019.
As a key incentive, the newly introduced electric vehicle (EV) tax credit has catalyzed substantial investments in US manufacturing facilities. BMW is the latest major automaker to commit significant funds to expanding its manufacturing presence in North America. Despite this, numerous other manufacturers, including Hyundai, Volkswagen, and Mercedes-Benz, among others, have already announced their plans to follow suit.
In the past year alone, American companies have invested more than $13 billion in electric vehicle (EV) manufacturing facilities across the United States. As electric vehicle (EV) production accelerates and fresh motivators emerge, the notion of a novel phenomenon appears to gain traction.
