n the OEM’s latest step towards meeting its electromobility goals, the BMW Group has announced a $1.7 billion investment in the U.S. to develop its Spartanburg plant in South Carolina while expanding its manufacturing footprint in the country. The investment will supported further by the joint development of a battery cell factory with Envision AESC.

Out of the total $1.7 billion invested in its U.S. operations, $1 billion will be allocated to ready its existing manufacturing facility in South Caroline for the production of EVs. The remaining $700 million will go towards the joint development of a new high-voltage battery assembly facility in Woodruff, SC.

Located 16 miles south of the Spartanburg plant, BMW’s new Woodruff, SC facility will dedicate more than 1 million sq. ft. to the development of next-generation batteries for future BMW EVs. Plant Spartanburg today produces lithium-ion battery modules for the BMW X3 xDrive30e, and BMW X5 xDrive45e – a pair of PHEVs also produced at the plant.

In working to localize battery production, aiming to purchase cells where production takes place, BMW announced a new partnership with Envision AESC to build a new battery cell factory in South Carolina. From 2026, the factory will supply Plant Spartanburg with round lithium-ion battery cells produced by Envision. The annual capacity of the new battery cell factory will be up to 30 GWh.

These cells were specifically designed for use in the sixth generation of BMW’s eDrive technology and will be further utilized in the OEM’s future EVs. This new battery format is expected to boost energy density, charging speed, and range while reducing CO2 emissions.