Politics Cast a Shadow Over Progress The Florence plant is part of a larger strategy by BMW and AESC to localize battery production for upcoming Neue Klasse EVs. FILE - AESC, an electric car battery maker, said Thursday, June 5, 2025, that the company is hitting pause on construction of the company's $1.6 billion facility in Florence County. The company will make battery cells for BMW's Spartanburg manufacturing plant.
(AP Photo/Matthias Schrader) "AESC. Envision AESC started building a huge battery plant in South Carolina two years ago to supply cells to BMW. It has now abruptly halted work on the site.
The "Big, Beautiful Bill" passed the Republican-controlled House a couple of weeks ago, and now the Republican-controlled Senate. Back in Florence, the Economic Development Partnership is actively engaged with AESC leadership, the State of South Carolina, and BMW to gain clarity on the revised project timeline and support a path forward. The Japan-based EV battery maker announced plans in 2024 to expand the Florence County, South Carolina, site.
AESC said it was investing $1.5 billion to build a second facility that will service BMW's assembly operations in San Luis PotosÃ, Mexico, where the automaker will build the next generation of its Neue Klasse EV model beginning in 2027. The Envision AESC plant in Florence is expected to produce battery cells for BMW, which will assemble them in its own $700-million battery facility in nearby Woodruff, S.C. AESC, a Japanese battery manufacturer, has paused construction on its $1.6 billion factory in Florence, South Carolina, designed to supply batteries for BMW's.
AESC has already rolled back its South Carolina plans. They announced a second factory on the Florence site, but then said earlier this year that their first plant should be able to handle BMW's. AESC Group is investing $810 million in Florence County, South Carolina to build a state-of-the-art 30GWh gigafactory.
AESC Group's plant development will supply next generation battery technology to power the next generation electric vehicle models produced at the BMW Group's Spartanburg plant. New gigafactory will kick-start the creation of 1,170 new, high-value jobs in Florence. The Florence, South Carolina, plant promised to supply battery cell architecture to BMW's operations in the state.
Specifically, BMW plans to open its Greer, South Carolina, plant using a steady supply of componentry from Florence.