BMW Completes $1.7 Billion South Carolina Investment, First U.S.-Made Electric SUV to Enter Production This Year
Claire Weston
BMW has completed a $1.7 billion investment in its South Carolina plant and a new nearby battery factory, with its first US-built all-electric SUV — the iX5 — set for production later this year, moving in the opposite direction from rivals pulling back on EVs.
What does this $1.7 billion buy?
The investment covers two sites: an upgrade to the Spartanburg assembly plant and a new battery factory in nearby Woodruff.
The first model is the iX5 — an all-electric version of the bestselling X5, priced just under $70,000 with up to 525 miles of range.
This means → BMW is not building a dedicated EV line. Electric, gasoline, diesel, and plug-in hybrid versions will share one production line, letting BMW shift output ratios as demand changes.
Everyone else is retreating — why is BMW going the other way?
Honda scrapped plans to build three EV models in the US in March, taking $9 billion in restructuring and impairment charges.
Ford halted the F-150 Lightning pickup, shut its Kentucky battery plant, and booked $19.5 billion in profit losses.
In plain terms = rivals are cutting EVs because US demand has badly missed forecasts — Bloomberg now projects EVs at just 17% of US sales by 2030, down from a 48% forecast two years ago.
If the US market is weak, what gives BMW confidence?
Spartanburg is BMW's largest vehicle plant globally, producing over 400,000 vehicles last year — roughly half exported.
The core hedge is exporting to Europe, where EV penetration sits at about 20%, far above the US at roughly 6%.
This means → BMW is not betting that Americans will buy EVs. It is betting it can build in the US and sell into Europe's stronger demand.
What should we watch next?
BMW plans to build at least six all-electric models in Spartanburg by 2030 and will begin US sales of the smaller iX3 electric SUV this fall.
Policy headwinds keep building: the federal $7,500 EV tax credit has been eliminated, and fuel-economy and emissions rules are being relaxed.
This reflects a single wager: as long as the production line stays flexible and the export channel stays open, BMW can ride out the US EV trough until demand recovers — whether European exports can keep underwriting that bet is the key thing to watch.
Content is for reference only, not financial advice.