The BMW Group is continuing the development of its electric mobility project with a new investment in the US to expand the Spartanburg plant and increase the company's production footprint in America. BMW Group CEO Oliver Zipse announced an investment of $1.7 billion in its US operations, including a $1 billion investment to prepare the existing production facility in South Carolina for electric vehicle production, and $700 million to build a new high-voltage battery assembly center in neighboring Woodruff. By 2030, the BMW Group will build at least six all-electric models in the US.
Zipse was joined at the Spartanburg plant by South Carolina Governor Henry McMaster, Secretary of Commerce Harry Lightsey III, Spartanburg County Economic Development Committee Chairman David Britt, and Woodruff, SC Mayor Kenneth Gist. Also announced was an agreement to supply next-generation lithium-ion battery cells from Envision AESC, which will build a new plant in the state.
"For decades, the Spartanburg plant has been a cornerstone of the BMW Group's global success. It is the 'home' of the BMW X models that are so popular around the world. In the future, it will also be an important driver for our electrification strategy, and we will be building at least six all-electric BMW X models here by 2030. That means: the 'Home of X' becomes the 'Home of Battery Electric Vehicles'," said Zipse. "In addition, we can highlight the BMW Group's 'local for local' principle: The newly developed sixth-generation battery cells designed specifically for the next generation of NEUE KLASSE electric vehicles will come from right here in South Carolina - where the electrification of the X's is taking place."
The Battery Cell Factory of Envision AESC in South Carolina will supply batteries to its factory in Spartanburg
In line with the "local for local" principle, the BMW Group intends to buy battery cells for its electric vehicles at the place of production. The company has found a partner in Envision AESC, which will build a new battery cell production facility in South Carolina to supply the Spartanburg plant. Envision will manufacture state-of-the-art, cylindrical lithium-ion battery cells designed specifically for the sixth generation of BMW eDrive technology, and will be used in the next generation of NEUE KLASSE electric vehicles. The annual production capacity of the cell plant will reach 30 gigawatt hours (GWh).
The new battery shape will increase the energy density over 20%, improve the charging speed up to 30% and increase the range up to 30%. At the same time, emissions, CO2 from cell production will be reduced by up to 60% through partial use of secondary raw materials - lithium, cobalt and nickel - as well as renewable energy for production.
The partnership with Envision AESC is an important step in the BMW Group's plan to strengthen its local supply chains. The expansion of electric vehicle production combined with a local battery cell plant will lead to the creation of new supply chains, new networks for individual suppliers and new jobs throughout the region.
The BMW Group has already announced that four more battery cell factories will be built in Europe and China to meet the demand for next-generation battery cells. These plants are being built by partners and each will have an annual production capacity of up to 20 gigawatt hours (GWh).
Increased Investment and Expanded Production Capacity in South Carolina
Of the new $1.7 billion investment, $700 million will be used to build a new high-voltage battery assembly center in Woodruff, SC, near the Spartanburg Plant. The new facility will encompass an area of more than one million square feet and will manufacture next-generation batteries for all-electric vehicles and is expected to create approximately 300 new jobs.
The Spartanburg plant currently manufactures lithium-ion battery modules for the two plug-in hybrid models built there, the BMW X3 xDrive30e (combined fuel consumption: 2.6-2.0 l/100 km WLTP, combined electricity consumption: 20.5-18.9 kWh/100 km WLTP, combined CO2 59-45 g/km WLTP) and the BMW X5 xDrive45e (combined fuel consumption in l/100 km: 1.7-1.2 WLTP, combined electricity consumption in kWh/100 km: 27.7-24.3 WLTP, combined CO2 in g/km: 39-27 WLTP.). In 2021, almost 70,000 BMW electric vehicles were built there. At the new facility, the Woodruff plant will leverage the experience and expertise developed at the Spartanburg plant.
The Factory of BMW Group at Spartanburg
The Spartanburg Plant was founded 30 years ago and began producing vehicles two years later. Since then, the plant has become a global center of excellence for BMW's SAV models and an important part of the company's global production network. Today, the plant represents an investment of approximately $12 billion, employs over 11,000 people, and has an annual production capacity of 450,000 vehicles. To date, over 6 million BMW vehicles have been built in the US - for the Americas and global markets. Based on this data, BMW has been the largest exporter of automobiles to the US by value for the past eight years.
The Spartanburg plant currently manufactures 11 models including the BMW X3, X4, X5, X6 and X7, four BMW M models and two plug-in hybrid models.
Later this year, production of the new hybrid-electric BMW XM will begin.
The plant is supported by more than 300 suppliers in the US, including over 40 direct or tier 1 suppliers in South Carolina alone.
Continuous Engagement in the USA
In addition to sales and marketing activities, the BMW Group's footprint in the US includes nearly 30 locations in 12 different states, including an advanced design studio, a technology & research centre and a venture capital fund in California, BMW Group Financial Services, and BMW Manufacturing Corporation, which operates the Spartanburg plant in South Carolina. The BMW Group's dealer network consists of nearly 650 independent BMW, MINI, Rolls-Royce and BMW Motorrad dealerships nationwide. In total, the BMW Group's U.S. operations directly and indirectly provide and support more than 120,000 jobs there and have contributed $43.3 billion to the U.S. economy.
"Technological Openness" and Customer-Centric Flexibility
The BMW Group has a clear focus on a sustainable future and shares a common philosophy in the USA regarding climate goals and the reduction of greenhouse gases. At the same time, the company is embracing a culture of "technological openness" by offering a range of pure electric, plug-in hybrid electric, and highly efficient internal combustion engine options to its customers to meet diverse needs in very different geographies across the country. The BMW Group is committed to meeting the goal of 50% of global sales being battery electric vehicles by 2030.
360 degree approach
The BMW Group has also set an initial target for reducing CO2 by 40% per vehicle by 2030. As the BMW Group is committed to the goal of climate neutrality, the company is focusing on reducing CO2 throughout the life cycle of a vehicle.
- Design and Engineering Evolution: In addition to the electrification of its product range, the BMW Group starts the design and engineering phase of a vehicle with a 'secondary first' approach, so that currently on average 30% of the materials used in BMW Group vehicles are recycled or reused. In the long term, the 'secondary first' approach aims to increase this figure to 50%.
- Supply Chain and Procurement: The BMW Group has been actively involved for many years in initiatives to develop standards for responsible raw material extraction and to promote compliance with environmental and social standards for raw material extraction through the certification of mines. The cobalt and lithium used as raw materials for the new generation of BMW battery cells will come from certified mines. This allows the company to maintain full transparency regarding the mining methods and to ensure responsible mining.
- Vehicle production: The BMW Group's global production network also relies on renewable energy such as solar, wind and hydroelectric power in the vehicle production phase. All of the company's production plants have a CO2 through offsets from 2021 onwards.
- Vehicle Use Phase: The BMW Group also strives to ensure that the electricity generated to charge the electric vehicle battery is also generated in a sustainable manner. For example, partnerships with dairy farms in California reduce greenhouse gas emissions by capturing methane and converting it into renewable energy that is exported to the power grid. The company also operates a pilot program called ChargeForward in the San Francisco Bay Area that allows owners to charge their vehicles with as much solar energy as possible.
- Vehicle recycling and end-of-life recycling: From the outset, BMW Group vehicles are designed with recycling in mind, which improves the recyclability and reusability of components. The company has already demonstrated the ability to recover over 90% of material from high-voltage batteries and has around 3,000 collection points around the world for recycling vehicles that have completed their life cycle.
As the BMW Group continues on the path to an electric future, the company is looking beyond the cars themselves to ensure that sustainability is achieved throughout the value chain and the entire life cycle of the vehicles. In the US, BMW currently offers two all-electric models, including the BMW iX Sports Activity Vehicle and BMW i4 Gran Coupe. The all-electric BMW i7 Sedan (combined energy consumption in kWh/100 km: 19.6-18.4 WLTP) will be launched later this year. With the NEW CLASS, BMW will take a significant step forward. For more information on the BMW Group's sustainability strategy and its unique approach to electrification, please visit the website: https://www.bmwgroup.com/en/sustainability.html
