BMW is investing €800 million into its Mexican plant in San Luis Potosí
1 hour ago
by Brad Anderson
BMW will build electric vehicles around its forthcoming Neue Klasse platform in San Luis Potosí, Mexico, in addition to sites in Hungary and Germany.
The German car manufacturer will invest €800 million ($861 million) in Mexico to make it happen. Of this investment, €500 million ($538 million) will be directed to the construction of a new assembly center for high-voltage batteries on the current plant grounds in San Luis Potosí.
This new assembly center will span an area of 85,000 square meters and more than 500 employees will work there, handling production of next-generation batteries for fully-electric vehicles. BMW says the Neue Klasse platform will see the battery pack directly integrated into the vehicle structure and that the site will be expanded to integrate this process into its operations.
Read: BMW Could Build Some Of Its Future EVs In Mexico
BMW’s Neue Klasse models will use round lithium-ion battery cells that are said to increase density by more than 20 per cent and improve both charging speed and range by up to 30 per cent. Additionally, the CO2 emissions from cell production will be reduced by up to 60 per cent, thanks in part to cell suppliers using renewable resources.
“With this new investment, our plant in San Luis Potosí will play a central role in BMW Group’s transition to electromobility,” president and chief executive of the BMW Group Plant San Luis Potosí, Harald Gottsche, said in a statement. “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.”
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The first cars based on the Neue Klasse platform will be produced in Debrecen, Hungary starting in 2025 before production starts soon after in Munich, Germany. Production of Neue Klasse models in Mexico will commence from 2027.