BMW plans to double its U.S. production capacity for lithium ion battery packs at its U.S. factory to support electric vehicle output at its largest global plant.
The fourth-generation batteries will be used in plug-in hybrid models of the BMW X5 and the future BMW X3, the automaker said Wednesday.
The $10 million investment comes as BMW embarks on an ambitious plan to launch 25 electrified vehicles — nearly half of which will be full electric — by 2023.
BMW said the additional capacity required it to add an assembly line and expand its battery production area at its assembly plant in Spartanburg, South Carolina, to more than 86,000 square feet.
The new line will be able to produce different types of batteries.
BMW has assembled lithium ion battery packs in Spartanburg since 2015 and has produced more than 45,000 units for the X5.
More than 120 people will be employed in battery pack assembly at the plant by year end.
Local assembly of the BMW X5 xDrive45e will begin in August, and BMW X3 xDrive30e production will start in December.