BMW to expand its battery production facility in China, report says

The battery production center is BMW's third in the world and its first outside Germany.

(Image credit: BMW China Weibo)

German luxury carmaker BMW plans to expand its power battery production facility in China, seemingly banking on the world's most complete new energy vehicle (NEV) industry chain to fuel its electrification transition.

BMW plans to invest tens of billions of yuan to expand its high-voltage battery production center in Shenyang, Liaoning province in northeast China, to expand its investment in battery projects in the country, the Global Times said in a report today, citing an unnamed BMW China insider.

The battery production center is BMW's third globally and its first outside of Germany, the report noted.

Earlier this week, several media reports said BMW would stop producing the electric version of the MINI hatchback in the UK and move production to China.

The Global Times report was covering that development with reference to BMW's plans to expand its battery facility in China, but provided no further details.

It's worth noting that BMW's power battery center in China was established several years ago, although the rapid growth of the country's electric vehicle industry has attracted plenty of eyeballs only in the past two to three years.

In January 2017, BMW Brilliance saw the opening of its power battery center, making the BMW and Brilliance Auto joint venture the first luxury automaker to establish such a facility in China.

In September 2020, the center opened its second phase, making it BMW's first global production site for fifth-generation power batteries, more than doubling the capacity of the first phase.

In August 2021, the battery plant sees the 100,000th power battery roll off the production line. BMW Brilliance said at the time that the plant has three cell coating lines, two module lines and two assembly lines, and can meet the supply of power batteries for all NEVs in the entire vehicle plant.

BMW is increasing its bets on China, the world's largest NEV market which has cultivated a well-established industry chain.

The Lydia plant, the third vehicle assembly plant at the automaker's production site in Shenyang, opened in June.

With a total investment of RMB 15 billion ($2.24 billion), the project is BMW's largest single investment in China to date and reflects BMW's long-term confidence in and commitment to the Chinese market, the company said in a press release at the time.

The Lydia plant has an electrification-oriented production system for up to 100 percent electric vehicle production capacity, and BMW's first all-electric midsize sports sedan, the BMW i3, is already in production here, the company said.

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