BMW Is Investing $1.7 Billion in Its South Carolina Factory To Produce Electric Vehicles
As the new Inflation Reduction Act changes the requirements surrounding tax credits for electric vehicles, many automakers are looking to increase U.S. production of their EVs.
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BMW Group announced Oct. 19 that it would invest $1.7 billion in its U.S. operations, designated exclusively to support electric vehicle and EV battery production, CNBC reported.
The move could help boost sales while supporting the growing demand for EVs, which will aid the Biden administration’s goal to have 50% of all new vehicles sold by 2030 to be “zero-emissions vehicles.” That definition includes battery electric, plug-in hybrid electric, and fuel-cell electric cars, trucks, and SUVs.
In August, the Biden administration announced that, as part of the Inflation Reduction Act, tax credits for imported EVs and hybrid electric vehicles would be eliminated. However, roughly 20 models will still qualify for the tax credit, according to Reuters.
Currently, BMW’s X5 and 3 Series plug-in models qualify for the credit, with assembly completed in the U.S. The investment in U.S. manufacturing facilities will enable BMW Group to produce at least six fully electric models in the U.S. by 2030.
BMW told CNBC that production of the new hybrid-electric BMW XM will also begin in 2022.
BMW will invest $1 billion in its Spartanburg, South Carolina, factory — plus an additional $700 million to construct a new high-voltage battery-assembly facility in Woodruff.
BMW also announced that it had entered a deal to purchase battery cells from Japan-based Envision AESC. The Japanese company is also building a battery cell factory in South Carolina. The factory’s location will be announced by the end of the year, CNBC reported.
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These measures will likely also help some BMW vehicles qualify after new battery sourcing rules for vehicles (concerning tax credits) go into effect after Jan. 1, 2023.
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This article originally appeared on GOBankingRates.com: BMW Is Investing $1.7 Billion in Its South Carolina Factory To Produce Electric Vehicles
