South Carolina finalizes battery plant for BMW, helped with incentives
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Florence, South Carolina, will be the new home of a Japanese firm’s $810 million electric vehicle battery plant that will supply BMW after state officials approved a package of incentives and cleared the way for development.
“South Carolina has been an automotive manufacturing powerhouse for over 30 years,” Gov. Henry McMaster said in a press conference held in Florence. “We have the workforce, business friendly environment, and the willingness to adapt to industry’s innovation necessary to ensure that companies that choose to do business here will find the success they’re looking for.”
Sprawled across an industrial park close to interstate shipping routes, 80 miles east of the state capital, Columbia, the planned 1.5 million-square-foot Envision AESC factory will produce batteries for BMW, which has a car factory 180 miles away in Spartanburg, South Carolina. When it’s in full swing the factory will employ 1,170 people, and have a carbon-neutral footprint, McMaster said.
In October, BMW Group said it would invest $1.7 billion to prepare for EV production at its Spartanburg plant.
The state’s plan makes available millions in incentives for both the automaker and municipality via the Coordinating Council for Economic Development, including a $135 million closing grant to the county and $70 million of general economic development bonds meant to help with infrastructure development on the sight.
Though exact details regarding the potential bond issuance are yet to be released, it will likely follow other similar packages offered by the state under a development plan championed by McMaster that seeks to reel in investments from electric vehicle producers expanding to meet increased demand.
$65 million in state development aid structured as general revenue bonds were cleared last month as part of BMW’s $1.1 billion investment in the facility outside Spartanburg in October. $20.2 million of the funds will be used for improving sewer systems, $15 million for training facilities, $12 million for water infrastructure, and $1.6 million for a contingency fund, officials said.
The automaker also invested in a plant in the city of Woodruff, incentivized by up to $100 million of revenue bonds that were approved by ballot measure.
BMW has poured billions into constructing or improving its electrical vehicle production network across the U.S. as it seeks to erect supply and production lines capable of meeting an expected explosion in EV demand headed into the future.
In October, McMaster signed an executive order that coordinates the development of the state’s electric vehicle production infrastructure by recruiting electric vehicle-related businesses, operating worker training centers, and establishing a “one-stop-shop” for companies interested in the state, according to a press release.
“As the industry continues to move towards electric vehicles, South Carolina will move along with it, working to ensure that our state will continue to be seen as the ideal place for manufacturers and suppliers to do business,” he said. “Along with these investments comes good-paying jobs that our people will be ready to take on.”
