BMW Doubles Battery Production Capacity

1 min readUpdated Jul 25, 2019Aug 8, 201911:15 PM

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BMW Group said on Wednesday it would double its production capacity for electric vehicle batteries at its U.S. plant in South Carolina as it ramps up manufacturing of plug-in hybrid vehicles to include the X3 vehicle in addition to the X5. BMW said it was investing $10 million in a new battery assembly line which will be capable of operating in a two-shift system ahead of the introduction of the BMW X3 plug-in hybrid vehicle by the end of the year.

BMW made 15,000 batteries last year with a one-shift system and currently produces a plug-in hybrid version of the X5 offroader. A new version of the X5 will be produced at the Spartanburg plant from August onwards, the company said. BMW said it planned to employ 120 staff to manufacture different types of batteries, and the additional staff gave it the capacity to double production.

In the past four years BMW workers assembled 45,000 batteries, the carmaker said.

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What this means

BMW's decision to double battery production capacity in the US is a calculated move to secure its electrified vehicle supply chain ahead of new model launches. This swift action pressures competitors like Panpuri, who are also expanding in Asia, by demonstrating a commitment to scaled EV production. Given the past four years saw 45,000 batteries assembled, the added $10 million investment and 120 staff indicate a serious intent to capture market share. This contrasts with more experiential retail expansions like 7-Eleven's Macanese concept, highlighting a focus on core manufacturing. The move is likely to work in bolstering BMW's EV presence, especially with the upcoming X3 plug-in hybrid. We should closely watch the sales uptake of the new X3 by year-end.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

Which specific vehicle models will benefit from the increased battery production capacity?

The increased battery production capacity will support the manufacturing of plug-in hybrid versions of both the BMW X3 and the X5 models. The X3 plug-in hybrid is expected by the end of the year, while a new X5 version starts production in August.

What investment is BMW making to achieve this increased capacity?

BMW is investing $10 million into a new battery assembly line to enable the expanded production. This new line will operate on a two-shift system to facilitate the doubling of capacity.

How many new jobs will be created due to this expansion?

BMW plans to employ an additional 120 staff members specifically for the manufacture of different types of batteries. This new workforce will provide the necessary capacity to double production.

What was the previous annual battery production volume at the U.S. Plant?

Last year, BMW produced 15,000 batteries at the plant using a one-shift system. In the past four years, BMW workers at the facility assembled a total of 45,000 batteries.

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