BMW is looking to build a new EV battery plant but it hasn’t decided where just yet. Originally, San Luis Potosi, Mexico was the plan, as that’s where BMW has a vehicle manufacturing plant, where it builds some 3 Series’ and other various BMWs. However, the deal isn’t done and BMW has told the local San Luis Potosi officials that it’s postponing its decision, to take some more time to think it out.
What’s there to think out, if BMW already has such a great relationship with the city of San Luis Potosi? According to Mexico-Now, BMW is now also considering building its battery plant in the U.S. Not only does BMW already have a great relationship with the state of South Carolina, home to its largest manufacturing plant in Spartanburg, but apparently the U.S. government is offering very attractive incentives. Mexico and the city of of San Luis Potosi are offering incentives as well, so it’s not an easy decision to make but, ultimately, the U.S. has a good chance of snagging another BMW plant.
From a logistical standpoint, both countries make sense for BMW. They’re in between Europe and Asia, which makes shipping easier and cheaper, and they can both supply the Americas for far cheaper than anywhere else. And since China and the U.S. are BMW’s two largest markets, having a battery plant in either the U.S. or Mexico helps tremendously.
The decision will likely come down to whichever government offers better incentives. According to Juan Carlos Valladares Eichelmann, head of Mexico’s Secretariat of Economic Development (SEDECO), the U.S. is being “very aggressive” with its incentives, in a big push to get BMW to build a second plant in the ‘States. Which isn’t surprising, given just how important the Spartanburg plant is to South Carolina. It’s created thousands of jobs, directly and indirectly, and is a massive help to the state’s economy.
BMW’s decision is likely sometime in the first quarter of 2023, so don’t expect the plant to be built anytime soon, regardless of where BMW decides to build it.
[Source: Mexico-Now]
