BMW unveils $1.7 billion South Carolina EV expansion to launch U.S.-built electric X5 line

Sebastian Mackensen, president and CEO of BMW of North America, highlighted a $1.7 billion investment to expand the company’s South Carolina manufacturing operations, underscoring BMW’s long‑term commitment to the U.S. market. He emphasized that the automaker is “here for the long game,” as the project moves beyond announcements to actual implementation.

The expansion, first announced in 2022, comprises a $1 billion upgrade of BMW’s Plant Spartanburg and a $700 million battery‑assembly facility near Woodruff, South Carolina. Mackensen described the initiative as a “major milestone” in BMW’s U.S. strategy, noting that the company is delivering on its promises.

BMW COMPLETES $1.7 BILLION SOUTH CAROLINA EXPANSION, UNVEILS ALL-ELECTRIC X5

Sebastian Mackensen, president and CEO of BMW of North America, said the investment marks a major milestone in the automaker’s U.S. manufacturing strategy and demonstrates that BMW is delivering on its commitments rather than simply making promises. (FOX Business / Fox News)

At Plant Spartanburg, BMW unveiled the all‑new X5 on Tuesday, marking the debut of the iX5, the marque’s first battery‑electric X5. Production of the iX5 is slated to begin later this year, making it the first fully electric BMW assembled in the United States.

BMW showcases the all-new X5 at its Spartanburg, South Carolina, plant on June 28, 2026. | Fox News

The iX5 will be the first of at least five additional fully electric BMW models planned for U.S. assembly by 2030, according to company projections.

While some automakers have scaled back or delayed their electric‑vehicle initiatives, BMW remains committed to advancing its EV roadmap, citing strong consumer interest and the need for a sustainable product mix.

“We are convinced that the EV is a relevant and here‑to‑stay drivetrain option,” Mackensen said. “Will it be the majority of vehicles sold? Probably not in the U.S., at least not in the foreseeable future. But at the same time, we are exporting to global markets from this plant.”

Plant Spartanburg, which has operated for more than three decades, continues to play a pivotal role in BMW’s global manufacturing network. The facility currently assembles models such as the X3, X6, X7 and XM for both domestic and international customers.

Mackensen noted that the plant’s growth has generated broader economic benefits for South Carolina, helping attract suppliers and ancillary businesses to the region.

“It has really had a changing impact on the whole community, not only in Greenville and Spartanburg, but also for the entire state,” he said.

South Carolina also serves as a cornerstone of BMW’s larger U.S. strategy. The American market remains the company’s second‑largest by volume and a key pillar of its worldwide plans.

Vehicles await export at the Port of Charleston in South Carolina. (BMW / Fox News)

“It shows our clear commitment to the U.S. market,” Mackensen told FOX Business. “It makes a lot of sense to assemble your cars where your customers are.”

BMW continues to be the largest automotive exporter from the United States by value, shipping nearly 3 million vehicles worth more than $113 billion between 2014 and 2025.

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