German automaker BMW announced plans to invest 800 million euros ($866 million) in plant expansion for the production of the all-electric “Neue Klasse” models and high-voltage EV batteries in San Luis Potosí, Mexico. Per the automaker’s press release on February 3, the investment is expected to generate over 1,000 job opportunities in the central Mexican state.
“With this new investment, our plant in San Luis Potosí will play a central role in BMW Group’s transition to electromobility.”
Plant head Harald Gottsche
Purpose of the project
BMW aims to sell all-electric vehicles for more than half of its overall sales by 2030. The automaker anticipates that the plant will increase the production of its Neue Klasse vehicles as well as its cutting-edge batteries for the international market.
“We are systematically gearing our production network towards electromobility. 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.”
Milan Nedeljković, production-focused Board of Management member at BMW AG
BMW will allocate more than 500 million euros for the battery assembly center on the premises of its current 85,000-square-metre plant, which will require additional 500 workers.
On the other hand, the automaker intends to use the other 300 million euros to adapt and expand the body shop and develop a new production line to install the battery packs, which will require 500 more workers.
Plant head Harald Gottsche told reporters that the company will start the plant construction and the new battery factory in early 2024. Meanwhile, the production ramp-up of the Neue Klasse models will start by early 2027.
BMW’s global EV push is not surprising, given that automakers are bound to adhere to higher environmental requirements to decrease their contribution to climate change. The expansion will undoubtedly boost the automaker’s production, aiding its target of 50% all-electric on its overall sales.