Dive Brief:
- Envision AESC will invest $810 million to build a large-scale battery cell production facility in northeast South Carolina to support its multi-year partnership with the BMW Group, the company announced Tuesday.
- Per the agreement, the Japan-based battery maker will supply lithium-ion batteries designed for next generation electric vehicles manufactured at BMW’s Spartanburg, South Carolina plant. The new battery format will improve charging speed and range up to 30%, according to a news release.
- Cell production at the site will also reduce CO2 emissions up to 60% through partial use of secondary key minerals and renewable energy in the manufacturing process.
Dive Insight:
AESC announced the Florence, South Carolina site weeks after BMW revealed plans to build a facility with the manufacturer dedicated to producing batteries for its EV operations in South Carolina.
The Florence plant will be conveniently situated near the interstate and Inland Port Dillon, according to the release. Upon completion, the plant will encompass an estimated 1.5 million feet, according to the release.
The new facility advances AESC’s strategy to grow its U.S. footprint to support the EV transition. The company's existing network consists of a battery manufacturing plant in Tennessee and one under construction in Kentucky.
“This facility is another milestone on our journey to building an electrification network in the U.S.,” AESC Group CEO Shoichi Matsumoto said in a statement. “We are making good progress on our ambition to create high-performance, long-range batteries for a diverse range of automotive manufacturers worldwide to support the EV transition and we’re excited to bring Florence Country on this journey with us.”
Florence County was awarded a $135 million Closing Fund grant to help build the facility, a state program meant to attract high-impact economic development projects to South Carolina. The state also approved up to $70 million in general economic development bonds to offset the costs of off-site infrastructure and a training center, according to the release.
“South Carolina has been an automotive manufacturing powerhouse for over 30 years,” Gov. Henry McMaster said in a statement. “Envision’s decision to establish operations in Florence County ... shows that we will continue to be one for years to come.”
Bosch Group is also leveraging its existing South Carolina manufacturing sites for EV component production. The automaker is taking advantage of its existing talent pipeline and suppliers and investing more than $260 million in additional component production capacity.
