EVWire brief: Battery-cell maker AESC has paused construction of its planned $1.6B factory in Florence County, South Carolina. The facility was meant to supply BMW’s next-generation cylindrical cells for the Neue Klasse EVs and employ around 1,600 people.
Context: As for the reason, AESC cites “policy and market uncertainty”. The company says more than $1B has already been invested and that work will restart once market conditions stabilize.
South Carolina has pledged $256 million in incentives ($121 million in bonds and $135 million in grants Commerce offered) that remain intact despite the pause.
This isn’t the first step back from AESC in the US either: in February 2025, AESC cancelled plans for a second $1.5B US plant, returning $111 million in subsidies.
We believe that, give it some time, and it’ll work out.
AESC does already operate its legacy plant in Smyrna, Tennessee, supplying battery packs for the Nissan Leaf built next door. Construction is also still moving ahead on a new 30 GWh gigafactory in Bowling Green, Kentucky, which was supposed to open in early 2025 and serve multiple automakers.
BMW is also set to start production in its own Woodruff battery plant in 2026.
Source: South Carolina Daily Gazette
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