BMW to Invest €800mn in Mexican Production Site for EVs & Battery Assembly

BMW Group is making an investment of €800 million in its Mexican production site for the integration of fully-electric models, and construction of local high-voltage battery assembly. The plant. in San Luis Potosí, Mexico, will produce fully-electric models for the NEUE KLASSE in the future and is setting up its own high-voltage battery assembly for this purpose.

The share of 50 percent of the company's worldwide sales of fully electric vehicles could be reached earlier than 2030. 

€500 million is earmarked for construction of a new assembly centre for high-voltage batteries, located on the plant grounds in San Luis Potosí.

More than 500 additional employees will work there, producing next-generation batteries for fully-electric vehicles.

The models of the NEUE KLASSE will use new, round lithium-ion battery cells developed specifically for what will then be the sixth generation of BMW eDrive technology.

The new battery format will increase energy density by more than 20 percent and improve charging speed and range by up to 30 percent. At the same time, CO₂ emissions from cell production will be reduced by up to 60 percent, as a result of cell suppliers relying on energy from renewable resources.

The company recently announced an investment of $1.7 billion in the expansion of its Spartanburg production site in the US.

This includes $1 billion for preparations for production of electric vehicles at the company’s US plant and $700 million for construction of a new assembly centre for high-voltage batteries in nearby Woodruff.

Milan Nedeljković, member of the Board of Management of BMW AG, says: "We are systematically gearing our production network towards electromobility. In Mexico, we are investing 800 million euros in our plant and creating around 1,000 new jobs. The first cars of the NEUE KLASSE will come off the production line at our plant in Debrecen, Hungary, starting in 2025, followed by the main plant in Munich. We will achieve additional volumes by integrating the NEUE KLASSE at Plant San Luis Potosí from 2027 onwards.”

Harald Gottsche, President & CEO at BMW Group Plant San Luis Potosí, adds: “With this new investment, our plant in San Luis Potosí will play a central role in BMW Group's transition to electromobility. The company is increasing its commitment to Mexico and its stake in our facility, not only due to its strategic location but, above all, to a solid work team, which, in less than four years after starting operations, already produces three models that supply 74 global markets and stand out for their quality.”

By 2030, the BMW Group aims to build at least six fully-electric models in the US.