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BMW’s Global Strategy: Five New Sites to Propel Next-Gen Electric Batteries

Munich. BMW Group is taking significant strides in the production of high-voltage batteries to support its new era of fully electric vehicles, known as the Neue Klasse. The company is establishing five new assembly sites across three continents: Germany, Hungary, China, Mexico, and the USA.

Global Expansion with Local Focus

“We are setting up five facilities on three continents to produce our sixth-generation high-voltage batteries,” said Milan Nedeljković, Board Member for Production at BMW AG. This “local for local” strategy aims to closely connect battery and vehicle production, enhancing the resilience of BMW’s manufacturing network. “This approach will ensure production stability amid political and economic fluctuations while reducing the carbon footprint due to shorter transportation distances,” added Markus Fallböhmer, Senior Vice President of Battery Production at BMW AG.

Strategic Locations for Enhanced Production

  1. Germany (Irlbach-Straßkirchen): The new assembly plant in Lower Bavaria will cater to BMW’s German car plants. Construction began in April 2024, with the facility expected to be operational by the end of the year.
  2. Hungary (Debrecen): The first Neue Klasse vehicles will roll out from BMW’s new plant in Debrecen in 2025. This facility will manufacture both high-voltage batteries and vehicles, with extensive preparations already underway to ensure a seamless production launch.
  3. China (Shenyang): By 2026, BMW Brilliance Automotive (BBA) in Shenyang will start producing Neue Klasse vehicles and locally manufactured batteries. The production hall was completed in November 2023, with equipment installation starting in March 2024.
  4. Mexico (San Luis Potosí): Production of Neue Klasse models in Mexico is slated to begin in 2027. The plant will include an expansive new battery assembly area and significant expansions to the bodyshop and logistics spaces. BMW aims to enhance sustainability by doubling photovoltaic energy generation at the site.
  5. USA (Woodruff, South Carolina): Covering about 93 hectares, the new Woodruff plant will supply high-voltage batteries to the nearby Plant Spartanburg. The site will create over 300 new jobs and is expected to be operational by 2026.

Centralized Expertise and Innovation

In Germany, the BMW Group’s Cell Manufacturing Competence Centre (CMCC) in Parsdorf and the Battery Cell Competence Centre (BCCC) in Munich are at the forefront of battery development. These facilities focus on creating prototype battery cells for the Neue Klasse and scaling up production-ready solutions through close collaboration across various departments.

Pioneering the Future of Electromobility

BMW’s strategic investments in these global assembly sites underscore the company’s commitment to innovation and sustainability in electric vehicle production. By integrating battery and vehicle manufacturing and focusing on local production, BMW aims to lead the charge in the evolving automotive landscape.

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