BMW plans to invest $865 million in its plant in San Luis Potosí, Mexico to produce electric vehicles and the batteries they need.
Company officials have said by 2030, battery-electric vehicles will account for more than 50% of its worldwide sales. However, this milestone may be reached before the forecasted date.
The German premium automotive brand is expanding its global production network to achieve this forecast and the San Luis Potosí Mexico plant will produce the “Neue Klasse” fully electric vehicles and high voltage batteries. Currently the plant produces the 3 Series, 2 Series Coupe and the new M2.
“The first models of the new (battery-electric) platform will exit the production line of our Debrecen, Hungary plant by the beginning of 2025,” said Milan Nedeljkovic, member of the Managing Board of BMW AG, responsible for Production, during an event attended by Mexican President Andrés Manuel Lopez Obrador and the state Governor Ricardo Gallardo Cardona.
“They will be followed closely by the main plant in Munich. We will achieve additional volume through the integration of the ‘Neue Klasse’ in the San Luis Potosí plant as of 2027.”
Additional investments
BMW recently announced a $1.7 billion investment to expand its Spartanburg, South Carolina plant, out of which $1 billion will be allocated to adapt the plant for EV production and $700 million will be invested in a new production center for high voltage batteries in the neighboring city of Woodruff. By 2030, BMW Group intends to produce at least six new battery-electric models in the U.S.
Of the $865 million to be invested in Mexico, $540 million will be used to build a new high voltage battery production center located in the grounds of the San Luis Potosí plant.
The 21,000-acre plant will employ 500 additional people to produce the latest generation EV batteries. Another 500 new jobs will be created for production of the electric vehicles in the San Luis Potosí plant.
The “Neue Klasse” EV models will use new round cell lithium-ion batteries designed specifically for the sixth generation of BMW eDrive technology.
This new format will increase energy density in 20% and will improve charging speed and EV range by 30 percent.