BMW has pledged to build at least six electric vehicles in Spartanburg by the end of the decade. While their identities remain under wraps, all will be SUVs in the “X” lineup. When the announcement was made in October 2022, the luxury brand also revealed it would source round battery cells from Automotive Energy Supply Corporation (AESC), which at the time planned to build a new factory in South Carolina.
Earlier this year, however, AESC paused construction of the facility intended to produce cylindrical battery cells for BMW’s Neue Klasse EVs, citing “policy and market uncertainty.” According to Automotive News, the upcoming electric models could still use AESC-supplied batteries, but they’ll be imported from China instead of being produced locally.
Our take: We believe that’s highly speculative at this stage, as it could introduce additional tariffs—something BMW is likely keen to avoid.
Even with tariffs affecting the automotive industry, it may still be cheaper for AESC to manufacture the batteries in China and ship them to Spartanburg. A BMW spokesperson contacted by Automotive News declined to comment but confirmed the company remains on track to start EV production in late 2026. Leading the charge (pun intended) will likely be the iX5, based on the next-generation X5 (G65).
The iX5 is expected to eventually replace the polarizing iX and will be followed by the larger iX7 (G67) in 2027. A year later, BMW could begin production of the iX6 (G66). All three will use Gen6 round battery cells, delivering a 20% boost in energy density and up to 30% more range compared to Gen5 prismatic cells. They’ll also feature new motors that reduce energy losses by 40% and cut weight by 10%.
It remains unclear whether a plug-in hybrid X5 will adopt Gen6 technology. As before, there are no plans for PHEV variants of the X6 or X7.
Source: Automotive News
