The BMW Group is investing €800 million in Plant San Luis Potosí in Mexico for integration of fully-electric models of NEUE KLASSE and construction of local high-voltage battery assembly.

BMW Group Plant SLP

We are systematically gearing our production network towards electromobility. In Mexico, we are investing 800 million euros in our plant and creating around 1,000 new jobs.

The first cars of the NEUE KLASSE will come off the production line at our plant in Debrecen, Hungary, starting in 2025, followed by the main plant in Munich. We will achieve additional volumes by integrating the NEUE KLASSE at Plant San Luis Potosí from 2027 onwards.

—Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production

Of the €800 million slated for Mexico, €500 million is earmarked for construction of a new assembly center for high-voltage batteries, located on the plant grounds in San Luis Potosí. The new assembly center spans an area of 85,000 m². More than 500 additional employees will work there, producing next-generation batteries for fully-electric vehicles.

At the plant, which went on-stream in 2019, around 3,000 employees already produce the BMW 3 Series, 2 Series Coupé and the new M2—in some cases, exclusively for the global market.

The plant is designed to be highly flexible, ensuring only minor adjustments are needed in the body shop and assembly to incorporate the new vehicle architecture.

A special feature of the NEUE KLASSE is that the high-voltage battery is directly integrated into the vehicle structure. The assembly in San Luis Potosí is therefore being expanded to integrate this new process into operations. A second shift will begin at the plant in April, adding another 500 new jobs. A total of about 1,000 additional employees will then be working at San Luis Potosí.

Plant San Luis Potosí is characterized by its responsible resource management and measures to reduce CO₂. In such a dry region, conserving water is particularly important. The plant is also home to the BMW Group’s first paint shop to operate without producing process wastewater. The water required for the painting process is treated and then reused. In addition, the plant sources only green power, which it generates itself at a more than 70,000 m² solar power installation on the plant grounds, supplemented by electricity from an external solar farm.

The models of the NEUE KLASSE will use new, round lithium-ion battery cells developed specifically for what will then be the sixth generation of BMW eDrive technology. (Earlier post.) The new battery format will increase energy density by more than 20% and improve charging speed and range by up to 30%.

At the same time, CO₂ emissions from cell production will be reduced by up to 60% as a result of cell suppliers relying on energy from renewable resources and, in the case of the raw materials lithium, cobalt and nickel, using a certain percentage of secondary material, i.e. material already in the cycle.

The company also recently announced an investment of US$1.7 billion in the expansion of its Spartanburg production site in the US. This includes US$1 billion for preparations for production of electric vehicles at the company’s US plant and $700 million for construction of a new assembly center for high-voltage batteries in nearby Woodruff. By 2030, the BMW Group aims to build at least six fully-electric models in the US.