BMW makes SC record $1.7 billion investment to build all-electric cars in Spartanburg

BMW Group on Wednesday announced a $1.7 billion capital investment to begin building all-electric vehicles for the U.S. and world markets at its Spartanburg plant.

The investment includes $1 billion to prepare the Spartanburg plant for the production of electric vehicles, and $700 million to build a 1 million-square-foot high-voltage battery assembly plant with 300 new jobs in Woodruff.

"The $1.7 billion capital investment is the largest in the history of South Carolina," Gov. Henry McMaster said.

Headquartered in Germany, the luxury car maker last year began production of fully electric vehicles at its Munich plant.

In North America, BMW currently offers two pure EVs, the BMW iX SUV and the BMW i4. In China, the automaker also offers the BMW i3 and its first-ever fully electric 7-series, the BMW i7 sedan, which is slated to release in North America in 2023.

With Wednesday's announcement, BMW Group Chairman Oliver Zipse said BMW will soon be producing fully electric vehicles at the plant for customers in North America and worldwide.

"By 2030, which is only eight years away, we will have a total of six fully electric vehicles on these lines which you see behind me," he said.

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Zipse said the Spartanburg plant will continue to manufacture plug-in hybrids and "highly efficient" combustion engine vehicles as well.

"We remain open to all technologies," he said. "There is no one-size-fits-all when it comes to individual customer needs."

Sen. Lindsey Graham: 'One of the most consequential announcements in the history of South Carolina'

U.S. Sen. Lindsey Graham of South Carolina said since BMW first announced plans to open its North American manufacturing plant in Spartanburg in 1992, BMW has met or exceeded all expectations.

"What was said today from this stage by the chairman of BMW was one of the most consequential announcements in the history of the state of South Carolina," Graham said. "Not just because of the money, but because when they write the chapter of electrification of the vehicle in the United States, South Carolina, the book, we'll be in the first chapter."

Graham said, however, it may take many years before the vast majority of vehicles Americans drive are electric.

"BMW is going to lead the world, not just South Carolina, in the electrification of the vehicle with the understanding that choice will still be important. Fossil fuels will be with us for many decades to come. Batteries will be the new oil."

Graham said he supported the recent $1.2 trillion infrastructure bill that includes funding to install charging stations nationwide.

Last week, McMaster signed an executive order that formalizes efforts to coordinate the future roll-out of the state's electric vehicle infrastructure. The order prioritizes efforts to recruit electric vehicle related business by training the state's workforce to be prepared for the industry.

Spartanburg County Councilman David Britt called Wednesday's announcement "a life changing and record-setting announcement."

He said the $1.7 billion capital investment, when added to $1.58 billion in other investment announced in Spartanburg County this year, brings the total to more than $3.3 billion this year – a record surpassing last year's $2 billion in investment.

And the 300 new jobs brings the yearly total to more than 2,000 jobs so far this year, he said.

"The future of mobility and really the future of automotive technology will be centered right here in Spartanburg County, benefiting thousands of people for years to come," Britt said.

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Town of Woodruff readies for growth related to BMW, industrial expansions

Woodruff Mayor Kenneth Gist said voters in Spartanburg School District 4 recently approved a $100 million bond referendum to build a new Woodruff High School, which will help train future employees at the battery cell assembly plant.

"Woodruff is ready," Gist said. "Our community is proud and supportive. We have invested in making our downtown, housing market and infrastructure, and now we have our education. We are ready for this road."

BMW Manufacturing's Plant Spartanburg has produced 6 million BMW vehicles since it opened in 1994, invested $12 billion and generated 11,000 jobs. It has the capacity to manufacture 450,000 vehicles a year.

Last month, BMW Group projected it will reach 400,000 electric vehicle sales worldwide next year as demand increases and supply chain issues ease.

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BMW sold more than 75,000 electric vehicles in the first half of 2022, more than doubling the total from all of 2021.

Zipse said BMW partnered with Envision AESC to build the new battery cell assembly plant in Woodruff to produce BMW's next-generation lithium-ion battery cells, made from lithium, cobalt and nickel. Renewable energy will be used for production, expected to reduce carbon dioxide emissions from cell production by up to 60%, Zipse said.

Plant Spartanburg currently produces lithium-ion battery modules for the two plug-in hybrid vehicles (part electric, part combustion) produced at the plant, the BMW X3 xDrive30e and the BMW X5 xDrive45e. The plant also produces the BMW X3, X4, X5, X6 and X7 sports activity vehicles and four BMW M models.

The plant is supported by more than 300 suppliers in the U.S., including more than 40 direct suppliers in South Carolina.

Contact Bob Montgomery at bob.montgomery@shj.com. Please support our coverage of Spartanburg County with a digital subscription.

This article originally appeared on Herald-Journal: BMW announces investment to build all-electric vehicles at Spartanburg