AESC to expand battery factory in South Carolina

The battery cell manufacturer AESC is investing a further 1.5 billion dollars in its new factory in the US state of South Carolina in order to also supply the BMW plant in Mexico with batteries for the Neue Klasse electric cars from 2027.

Image: BMW

In December 2023, AESC had already announced a doubling of its investment in the site in Florence County, South Carolina, to USD 1.62 billion. With the additional 1.5 billion dollar investment now announced, AESC’s investment there will increase to 3.12 billion dollars and is expected to create a total of 2,700 jobs.

The new investment will serve to construct a second EV battery manufacturing facility adjacent to the first building which broke ground in June 2023. Production at the new facility is expected to start in 2027, and the company has already begun recruiting staff. The first expansion was announced at the end of 2023.

AESC had initially started construction of the battery factory in South Carolina last summer, in order to manufacture cylindrical battery cells for BMW. At the time, the production facility in Florence County is scheduled to come on stream in 2026. BMW plans to use the battery cells for production at its factory in Mexico, where the German company intends to build its ‘Neue Klasse’ electric cars.

“We greatly value our partnership with South Carolina and Florence County as we strengthen our work together through this latest expansion that enhances our commitment to create high value jobs in the region and invest in the state,” said AESC CEO Shoichi Matsumoto. “South Carolina is a crucial part of our strategy to power next generation electric vehicles for customers across the US by manufacturing high-performance, longer-range EV batteries locally. Through our collaborative efforts, I am excited that we are able to support thousands of new workers and increase both AESC and South Carolina’s leadership in providing advanced clean energy transportation solutions.”

“AESC’s second expansion in less than four months in Florence County signals yet another vote of confidence in our state and our people,” added Governor Henry McMaster. “This investment is another monumental win for Florence County, and we look forward to the substantial impact this will have throughout South Carolina.”

The battery manufacturer has not only been active in the US lately, with two battery factories planned in the UK, as well as a factory in Spain to supply mainland Europe. BMW is also not the only German automobile manufacturer who wants the battery cells, as Mercedes is also counting AESC’s supply from Spain.


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