BMW's US Electric Vehicle Plant Back on Track for 2026

BMW just solved a problem that threatened to derail its plans to build next-generation electric vehicles in the United States.

The German automaker has been preparing its Spartanburg, South Carolina plant to produce its new Neue Klasse electric vehicles starting in 2026. But those plans hit a snag last June when battery supplier AESC unexpectedly paused construction of its nearby battery cell factory, citing uncertainties about US economic policy and market conditions.

Without a local battery supply, BMW faced the possibility of delaying production at both its Spartanburg vehicle plant and its new battery assembly facility in Woodruff, South Carolina. The company had invested heavily in both locations under a "local for local" strategy designed to build vehicles close to where they're sold.

Now BMW's Chief Procurement Officer Nicolai Martin has confirmed the issue is resolved. "There is no risk of a battery cell shortage for our Spartanburg plant," Martin told German automotive publication Automobilwoche.

The solution involves a two-part approach. For now, AESC will supply battery cells to BMW's US operations from its existing factories around the world. Meanwhile, BMW continues working toward establishing a fully localized supply chain within the United States, though the company hasn't confirmed whether those cells will ultimately come from AESC or another supplier.

The Woodruff battery assembly plant will begin operations in 2026 as originally scheduled. By the end of this year, the Spartanburg factory will start manufacturing fully electric vehicles based on the Neue Klasse platform, with the iX5 expected to be the first model.

The Ripple Effect

This development means thousands of manufacturing jobs in South Carolina remain secure and the region continues its transformation into an electric vehicle hub. BMW's Spartanburg plant already employs over 11,000 workers, making it one of the state's largest employers.

The resolution also demonstrates how automakers are adapting their supply chains to meet the growing demand for electric vehicles while navigating economic uncertainty. By maintaining flexibility in sourcing while still pursuing local production, BMW is creating a model other manufacturers might follow.

South Carolina workers will soon be building the future of electric mobility right in their backyard.