BMW rolls out $1.7B electric vehicle investment at its SC operations, will add 300 jobs

German automaker BMW rolled out Wednesday a $1.7 billion investment in South Carolina as part of its conversion to an electric vehicle line, which includes the construction of a $700 million high-voltage battery assembly facility in Woodruff.

The investment is South Carolina’s largest, Gov. Henry McMaster said at BMW’s announcement Wednesday.

The move includes spending $1 billion to prepare its 30-year-old Spartanburg plant for electric vehicle production. The automaker said it plans to produce at least six fully electric BMW X models in Spartanburg by 2030.

The $700 million battery assembly facility in Woodruff will be 1 million square feet and create new 300 jobs.

McMaster’s office also said $65 million in taxpayer funded incentives will go to Spartanburg County from the state’s closing fund to help with project costs.

From that same deal-closing pot, the legislative Joint Bond Review Committee that signs off on large capital expenditures also Tuesday gave the OK for commerce to spend $135 million on another project, but details were not immediately available about whether it’s connected to the BMW investment.

“For decades, Plant Spartanburg has been a cornerstone of the global success of the BMW Group (and) the home of the BMW X models that are so popular all over the world,” Oliver Zipse, BMW Group’s chairman of the board of management, said in a statement. “Going forward, it will also be a major driver for our electrification strategy.”

BMW also is partnering with electric car battery maker Envision Automotive Energy Supply Co., which will build a battery cell factory to supply the BMW plant. Further details of Envision’s project will be released at a later date, the governor’s office said.

State documents, released earlier this week, initially said the “manufacturing facility for certain products for use in the automotive industry” would have an investment of at least $400 million in the project and create at least 400 jobs in the state.

To move the Envision project forward, South Carolina also plans to borrow $70.3 million to pay for infrastructure upgrades for the facility.

The investment includes road, water and sewer infrastructure as well as building an employee training facility. The move was approved Tuesday by the State Fiscal Accountability Authority, which is chaired McMaster.

With McMaster, the Legislature’s budget chairmen Sen. Harvey Peeler, R-Cherokee, and Rep. Gary Simrill, R-York, also sit on the State Fiscal Accountability Authority. So do Treasurer Curtis Loftis and Comptroller General Richard Eckstrom.

Eckstrom, the only member of the panel who did not vote on the question to issue bonds for the project, said Tuesday he was concerned the state would borrow money when it has a sizable surplus available. He said the state should pay with cash on hand and avoid paying interest on a loan over 20 years.

“The funding is needed. There’s no question about the funding, but it’s the way in which we provide for that funding,” Eckstrom said.

Peeler said lawmakers will look at spending money from the state budget to pay for the needed infrastructure next year.

McMaster pushes to build electric cars in SC

The electric vehicle announcement follows a push by McMaster to encourage more electric vehicle production in South Carolina.

“BMW’s sustained and impactful presence in South Carolina demonstrates the power of partnership and shared commitment to our state’s automotive industry success,” McMaster said in part Wednesday, adding that the announcement shows that the ”road to the future is here.”

Last week, McMaster directed the state Department of Commerce to establish a “one-stop shop” and primary contact for electric vehicle manufacturers interested in coming to the state.

McMaster’s spokesman has said as the automotive industry shifts toward making more electric vehicles, the administration wants to ensure vehicles are manufactured in South Carolina.

In a Oct. 14 sit-down interview with The State newspaper, McMaster, who is running for a second term against Democrat Joe Cunningham, teased that the state is in talks with several auto-related companies but remained mum on who they are.

“We’re trying to get all great companies to come to South Carolina and we’ve been very successful,” McMaster said. “We have some great companies that we’re speaking to, right now. I’d love to tell you (who) because you would be very excited.”

Infrastructure spending for Envision AESC

A breakdown of how the state of South Carolina says it plans to spend $70 million for infrastructure improvements for an automotive company project:

▪ Employee training facilities: $15 million

▪ Road improvements: $21 million

▪ Water infrastructure: $12.15 million

▪ Sewer infrastructure: $20.25 million

▪ Contingency: $1.6 million