# BMW invests $1.7 billion to build electric vehicles in U.S Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: BMW to invest $1.7 billion in U.S. EV production Meta Description: BMW will invest $1.7 billion in the United States to build electric vehicles, creating jobs and boosting range and charging speed. URL: https://financedigest.com/bmw-invests-1-7-billion-to-build-electric-vehicles-in-u-shtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-19t150545z2lynxmpei9i0lqrtroptp4autoshow-munich-1736814994627-compressed.jpg) By David Shepardson SPARTANBURG, South Carolina (Reuters) -BMW AG said on Wednesday it will invest $1.7 billion to build electric vehicles in the United States, the latest announcement from a major automaker about plans to ramp up U.S. EV production. The German [company said it was making a new $1 billion investment](https://www.financedigest.com/anyone-can-write-assignment-need-people-able-apply-new-skills-workplace-says-top-investment-management-company.html "“Anyone can write an assignment, but we need people to be able to apply their new skills to the workplace,” says top investment management company") in its Spartanburg, South Carolina plant to prepare for EV production and will spend $700 million on a new high-voltage battery assembly facility in nearby Woodruff, South Carolina, and create at least 300 jobs. It’s the biggest single investment we’ve done so far,” BMW Group Chairman Oliver Zipse told Reuters in an interview. [South Carolina](https://www.financedigest.com/feature-as-u-s-flooding-worsens-south-carolina-redraws-risk-maps.html "FEATURE-As U.S. flooding worsens, South Carolina redraws risk maps") Governor Henry McMaster said at a ceremony the BMW capital investment is the largest in the state’s history. BMW also said Chinese renewable energy group Envision’s Automotive Energy Supply Corporation (AESC) will [build a new battery](https://www.financedigest.com/li-cycle-to-build-french-battery-processing-facility.html "Li-Cycle to build French battery processing facility") cell plant in South Carolina with an annual capacity of up to 30 GWh to supply the automaker. The luxury automaker [plans to build at least six fully electric](https://www.financedigest.com/vw-to-speed-up-electric-shift-in-five-year-plan.html "VW to speed up electric shift in five-year plan") BMW models in the United States by 2030. BMW would not [set a date to end](https://www.financedigest.com/oil-set-to-end-turbulent-2022-modestly-higher.html "Oil set to end turbulent 2022 modestly higher") production of gas-powered vehicles, it said, raising concerns about new U.S. EV [tax credit requirements aimed at preventing the use of Chinese battery components and minerals](https://www.financedigest.com/eu-us-working-on-deal-to-make-ev-minerals-eligible-for-tax-credits-eu-official.html "EU, US working on deal to make EV minerals eligible for tax credits -EU official"). Zipse said no region could be completely independent especially on battery [raw materials](https://www.financedigest.com/henkel-trims-earnings-outlook-on-raw-material-price-spike.html "Henkel trims earnings outlook on raw material price spike") and that the United States “should have a regulation that is not completely unrealistic. He warned the new $7,500 EV tax credit [law adopted in August could prevent](https://www.financedigest.com/eu-seeks-deal-on-law-preventing-import-of-deforestation-linked-goods.html "EU seeks deal on law preventing import of deforestation-linked goods") automakers from using the credit. It would be a disaster if you [stop industry](https://www.financedigest.com/carlsbergs-poland-unit-could-stop-production-lack-of-co2-threatens-food-industry.html "Carlsberg’s Poland unit could stop production; lack of CO2 threatens food industry") from developing,” Zipse said. [BMW said its new battery](https://www.financedigest.com/bmw-bets-on-design-and-recycling-not-mining-to-lower-battery-costs.html "BMW bets on design and recycling, not mining, to lower battery costs") format will increase energy density by more than 20%, improve charging speed and boost range by up to 30%. BMW [Group had already announced](https://www.financedigest.com/incentive-fm-group-announces-latest-strategic-me-acquisition.html "INCENTIVE FM GROUP ANNOUNCES LATEST STRATEGIC M&E ACQUISITION") that four additional battery cell factories will be built in Europe and China to meet its needs. Zipse said the location of a sixth planned cell factory would be determined by [market demand](https://www.financedigest.com/car-bulb-market-demand-supply-growth-factors-latest-rising-trend-and-forecast-to-2028.html "Car Bulb Market Demand, Supply, Growth Factors, Latest Rising Trend and Forecast to 2028"). The cell factories being built by [company partners](https://www.financedigest.com/mercia-partners-with-augmentor-to-support-the-next-generation-of-vr-and-ar-companies.html "Mercia partners with Augmentor to support the next generation of VR and AR companies") will each have an annual capacity of up to 20 GWh. BMW’s 30-year-old South Carolina [plant has built more than 6 million](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant") vehicles, employs more than 11,000 people, and has an annual production capacity of up to 450,000 vehicles. [South Carolina awarded](https://www.financedigest.com/inmobi-and-coca-cola-win-mma-smarties-south-africa-award-for-beat-can-campaign.html "InMobi and Coca-Cola Win MMA SMARTIES South Africa Award for Beat Can Campaign") a $65 million grant to Spartanburg County to assist with costs related to the project. (Reporting by David Shepardson; Editing by Tomasz Janowski and Bernadette Baum) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---