More funds flood into EV, battery production

FOR proof that car companies have deep, deep pockets when it comes to investment in electric vehicles, look no further than BMW’s just-announced plans to tip in an extra $US1.7 billion ($A2.67b) to its roll-out of electro-mobility in the United States and to expand its Spartanburg production facility in South Carolina.

 

Announced last week by BMW Group chair Oliver Zipse, the cash is aimed at growing the company’s manufacturing footprint in the US and includes $US1 billion ($A1.57b) to prepare for the production of electric vehicles at Spartanburg, which employs 11,000 people.

 

The remaining $US700 million ($A1.1b) is to build a new high-voltage battery assembly facility in nearby Woodruff.

 

By 2030, BMW Group says it will build at least six fully electric models in the US.

 

Mr Zipse was joined for the announcement at Spartanburg by South Carolina governor Henry McMaster, secretary of commerce Harry Lightsey, Spartanburg County Council Economic Development Committee chair David Britt and Woodruff mayor Kenneth Gist.

 

Also announced was an agreement to source next-generation lithium-ion battery cells from Envision AESC, which will build a new plant in South Carolina.

 

“For decades, Plant Spartanburg has been a cornerstone of the global success of the BMW Group producing numerous different models including SUVs, sedans, roadsters and coupes. Currently, the plant is home of the BMW X model SUVs that are popular all over the world,” said Mr Zipse.

 

“Going forward, it will also be a major player in our electrification strategy, and we will produce at least six fully electric BMW X models here by 2030. That means: The ‘Home of the X’ is also becoming the ‘Home of the Battery Electric Vehicle’.”

 

“In addition, we can showcase BMW Group’s ‘local for local’ principle: Our newly developed sixth-generation battery cells, which were specifically designed for the next generation electric vehicles, will be sourced here in South Carolina – where X goes electric.”

 

The annual capacity of Envision’s new battery cell factory will be up to 30 GWh, producing newly developed round lithium-ion battery cells that were specifically designed for the sixth-generation of BMW’s eDrive technology and will be used in the group’s next-generation electric vehicles.

 

BMW says the new round battery format will increase energy density by more than 20 per cent, improve charging speed by up to 30 per cent and enhance range by up to 30 per cent as well as being easier to package within the vehicle.

 

At the same time, CO2 emissions from cell production will be reduced by up to 60 per cent through the partial use of secondary lithium, cobalt and nickel material, as well as renewable energy for production. 

 

The new Envision plant in South Carolina will join four battery cell factories that BMW has announced will be built in Europe and China to meet its demand for next generation battery cells.

 

Like South Carolina, the batteryl factories are being built by partners and will each have an annual capacity of up to 20 GWh.

 

BMW says the expansion of localised electric vehicle production in combination with a local battery cell factory will lead to the creation of new supply chains, new networks for sub-suppliers and new jobs throughout each region.