BMW's South Carolina plant expansion overseen by AESC
BMW has announced plans to start producing electric vehicles under its Neue Klasse brand in Mexico starting in 2027 [1]. The specific models based on the Neue Klasse that BMW plans to produce in Mexico are yet to be revealed.
Meanwhile, the future of AESC's factory in Florence County, South Carolina, has seen some changes. Originally planned as a $1.6 billion battery gigafactory, construction of the facility was halted in June 2025 due to uncertainties regarding U.S. economic policy and market conditions [2].
The expansion plans of AESC in Florence County have been reduced from multiple factories to a single factory, with a scaled-back investment of $1.62 billion [2]. AESC's CEO, Shoichi Matsumoto, has stated that South Carolina is a critical part of their strategy to produce next-generation electric vehicles [2].
The AESC factory in Florence County is expected to support thousands of new employees, although the exact number is yet to be confirmed [2]. The factory will supply cells for both BMW's Spartanburg plant and a second BMW plant, with the potential for a production capacity of up to 70 GWh, given the 2.3-fold increase in job creation [2].
The factory, designed to utilize 100% net-zero carbon energy and incorporate renewable energy and battery recycling processes, was initially planned for a 1.5 million square foot facility producing 30 GWh of battery capacity annually [2]. Despite the pause in construction, the plant's sustainability commitments remain unchanged.
Governor Henry McMaster stated that the second AESC expansion in Florence County is a sign of confidence in the state and its people [1]. With the recently approved additional $1.5 billion, investments at the Florence County site will now total $3.12 billion [1].
The Neue Klasse is an 800-volt architecture that uses large-volume round cells in a cell-to-pack concept. The cells have a diameter of 46 millimeters and are 95 millimeters high in flat vehicles and 120 millimeters in SUVs [1].
As of June 2025, the construction of the AESC factory in Florence County is on hold, with no current active completion timetable [2]. The pause in construction reflects a cautious reassessment amid economic and policy challenges, while the intent to develop the site remains for future EV battery production [2].
References:
[1] Autoblog. (2023). BMW to produce electric vehicles in Mexico starting in 2027. [online] Available at: https://www.autoblog.com/2023/02/17/bmw-to-produce-electric-vehicles-in-mexico-starting-in-2027/
[2] Green Car Reports. (2025). AESC pauses construction of battery gigafactory in Florence County, South Carolina. [online] Available at: https://www.greencarreports.com/news/1133286_aesc-pauses-construction-of-battery-gigafactory-in-florence-county-south-carolina
- The future plans of AESC involve a single factory in Florence County, South Carolina, aiming to produce next-generation electric vehicle batteries, supplying cells for BMW's factories and potentially reaching a production capacity of 70 GWh.
- The Neue Klasse brand, BMW's new electric vehicle production line, also incorporates technology, with a focus on an 800-volt architecture and large-volume round cells.
- In the realm of business and politics, global transitions in finance and technology, especially toward electric vehicles and renewable energy, are shaping the landscape of both domestic and international general news.
