Japanese battery tech company AESC invests another $1.5 billion to fund its expansion plans in its electric vehicle battery plant in South Carolina.
AESC launches the factory’s second expansion in 4 months
According to the press release, this latest electric vehicle battery manufacturing expenditure is already the second expansion effort of AESC in its factory in Florence County.
The Japanese battery maker initially announced plans to construct the Florence County factory in December 2022. After a year, the company shared its $810 million expansion. It is definitely a major investment at $3.12 billion.
The second $1.5 billion expansion project will generate 1,080 new jobs, increasing the factory’s current workforce to 2,700 employees.
As part of the expansion, AESC will develop a second innovative electric vehicle battery production plant adjacent to the first facility, which started construction in June of last year.
For context, the AESC campus is strategically located in over 1,000-acre Florence Global Technology Park.
“We greatly value our partnership with South Carolina and Florence County as we strengthen our work together through this latest expansion that enhances our commitment to create high value jobs in the region and invest in the state. South Carolina is a crucial part of our strategy to power next generation electric vehicles for customers across the U.S. by manufacturing high-performance, longer-range EV batteries locally.”
AESC CEO Shoichi Matsumoto
AESC to supply battery parts to BMW Group
In hindsight, AESC formed a multi-year partnership with German automaker BMW for battery cell supplies in 2022. BMW uses these cutting-edge battery cells for its next-gen electric vehicles at its Plant Spartanburg.
Meanwhile, the latest expansion will further solidify the original partnership to cover the electric vehicle battery parts supply to BMW Group’s Mexico Assembly Operations.
“Government support
State officials reportedly approved another $111 million incentive for AESC on Tuesday. This new funding follows the initial $121 billion government aid for the company.
South Carolina will pay for the following tasks to help AESC’s expansion project:
- Warehouse building on land owned by Florence County
- Site preparation
- Road improvements
- Water system improvements
- Expansion of a training center
“This investment is another monumental win for Florence County, and we look forward to the substantial impact this will have throughout South Carolina.”
Governor Henry McMaster (R-SC)
AESC and the state expect to initiate the work from July 2024 to December 2025. Meanwhile, the official launch of operations is set for 2027.
