BMW is doubling its investment at its Hungarian factory to 2 billion euros ($2.1 billion), adding a high-voltage battery assembly facility.
Locating the battery assembly at the Debrecen plant will help BMW streamline logistics for production of its next generation electric cars that will use the “Neue Klasse” underpinnings, the automaker said Friday.
Output for both cars and batteries is scheduled to start by the end of 2025.
The plant in Debrecen is central to BMW’s efforts to take on Tesla, which continues to dominate global EV sales.
With its new EV-focused platform, the automaker aims to cut cell costs by half and increase both range and charging speed by 30 percent compared to current models.
BMW CEO Oliver Zipse has said the automaker will initially focus the new architecture on full-electric models for the midsize premium segment such as the 3-Series.