BMW's U.S. Battery Plant to Start Production in December, Supporting iX5 EV Mass Production

BMW Group announced that its new high-voltage battery plant in Woodruff, South Carolina, will begin mass production in December 2026. This move is seen as a critical step in BMW's accelerated strategy for localized electrification and will directly support the U.S. production and delivery of the 2027 iX5 all-electric midsize crossover.

The high-voltage batteries produced at this facility will be exclusively supplied to the 2027 iX5 60 xDrive model, which debuted in June 2026 and is expected to begin U.S. deliveries in Q1 2027. Notably, this marks BMW's first all-electric variant of the iconic X5 lineup — and will also be the first fully electric vehicle to roll off the Spartanburg assembly line.

BMW plans to produce both the next-generation X5 (offering gasoline and plug-in hybrid variants) and the iX5 simultaneously at Spartanburg. The Woodruff plant lies approximately 24 km from the main Spartanburg facility and represents a total investment of roughly $1.7 billion, with groundbreaking occurring in 2023. BMW stated that this initiative aims to strengthen vertical integration between battery and vehicle manufacturing — "laying the foundation for the next generation of fully electric BMW X-series models in Spartanburg."

By 2030, BMW plans to assemble at least six fully electric models in the U.S., all powered by batteries from the Woodruff plant. Meanwhile, BMW has established similar battery facilities in Germany, China, Mexico, and Hungary (where the Debrecen plant began mass production in autumn 2025), forming a globally coordinated production network.

However, localized supply chains still face real-world challenges. The iX5 features BMW's sixth-generation eDrive technology and an 800-volt electrical architecture, with an estimated CLTC all-electric range of 435 miles (~700 km). Its high-voltage battery pack comprises approximately 1,000 cylindrical cells — each about 120 mm tall, roughly the size of a soda can. AESC (NEW VISION Power Holdings), the cell supplier, had planned a $1.6 billion dedicated battery factory in Florence, South Carolina — but announced in June 2025 that construction would be paused due to "policy and market uncertainty." According to insiders speaking to Automotive News, financing difficulties and rising import tariffs on equipment were the primary causes.

In response, BMW has activated a transition plan: AESC continues fulfilling contractual obligations by supplying cells to the Woodruff plant via its global production network, ensuring battery availability during pre-production phases. A BMW North America spokesperson confirmed: "A transition agreement has been reached — AESC's global capacity will support the Woodruff high-voltage battery assembly plant; going forward, we will shift to U.S.-based cell suppliers in line with our 'local production' strategy." Currently, the Woodruff plant employs around 300 people operating on a two-shift schedule and deploys an in-house AI assistant for zero-defect monitoring across all processes. The facility spans just over one million square feet — equivalent in size to the original Spartanburg plant built in 1994.