BMW to Invest US$866 Million to Boost EVs Production in Mexico

BMW will invest about US$866 million (€800 million) to implement its newest electric platform, “Neue Klasse,” at its San Luis Potosi plant. This plan is part of BMW Group efforts to increase its EVs production capabilities, as the group focuses on meeting the growing demand for sustainable mobility solutions. The investment will create over 1,000 new jobs, according to the company’s press release.

The Neue Klasse platform is expected to start operations in San Luis Potosi in 2027. The first vehicles made under this platform will be produced at BMW’s plant in Debrecen, followed by those in Hungry and Munich. "We are systematically reconfiguring our production network to move towards electric mobility. In Mexico, we are investing €800 million in our plant and creating close to 1,000 new jobs,” says Milan Nedeljković, Member of the Board of Management of Production, BMW AG.

More than half of the total investment – €500 million (US$536 million) – will be used to construct a new high-voltage battery production center that will manufacture state-of-the-art batteries for completely electric cars. With this investment, BMW Group aims to increase the role of the San Luis Potosi plant in its global transition to electromobility, says Harald Gottsche, President and CEO, BMW Group San Luis Potosi Plant.

“The company reinforces its commitment to Mexico and its participation in our production network, not only due to its strategic location but, above all, thanks to a solid work team, which, after less than four years of having started operations, already produces three models that it supplies to 74 global markets and that stand out for their quality,” says Gottsche. The San Luis Potosi plant is also notable for its responsible resource management and CO2 reduction measures, which include water conservation and the use of green energy.

The remaining investment will be used to adapt and increase the plant’s body shop capabilities and develop a new assembly line fully dedicated to install the vehicle’s battery packs, Gottshce tells Reuters. "We will start building, constructing the extensions and the new battery assembly in the beginning of 2024, and we will start (to ramp up) production at the beginning of 2027," he says.

Recently, the automaker announced a strategic alliance with Evergo to enhance the public EV charging network across Mexico. Both companies will jointly invest US$200 million to roll out over 4,000 new public charging stations in Mexico over the next five years, as reported by MBN.