BMW says it will make batteries for its electric vehicles at a factory in South Carolina.
The German company plans to invest over one billion dollars in the US, including $700 million for a new battery-assembly facility in nearby Woodruff.
At least six electric models will be produced in the US by the year 2030. BMW will be able to qualify for the federal EV tax credit if it establishes a US-based EV plant.
BMW wants to build a battery plant in South Carolina.
A dedicated battery plant in South Carolina is one of the things BMW is working on. The company from Japan will make battery cells for BMW. The battery factory will have a capacity of 30 gigawatt-hours.
BMW is planning to build EV production facilities in Europe and China. There are several electric models for sale by the company.
The tax credit has led to a boom in battery factories in the US. Most of the new facilities will be located in the south.
The $7,500-per-vehicle tax credit requires electric vehicles to be assembled in the US in order to be eligible. There are concerns that the new tax credits could discriminate against companies without US based manufacturing facilities, but they have begun to make moves to localize production in the US.
The three new Ford battery plants will be able to produce 129GWh a year. Honda andHyundai have announced plans to build factories in the US.
GlobalData predicts that global battery production will increase from 95.3GWh in 2020 to 410.5GWh in 2024.