At a surprising turn of events that highlight the increasing concerns about the American trade and energy policy, AESC has stopped the AESC manufacturer AESC, building its factory of $ 1.6 billion in Florence Province, South Carolina. The attachment, designed to provide high -voltage cylindrical battery cells to BMW for its electric cars from the next generation, is now facing an unspecified delay due to what the company describes as “uncertainty in politics and markets.”
This announcement, which made Thursday, emphasizes the fragility of international investment in the EV sector in America with the transformation of political winds in Washington. AESC said in a brief statement: “Because of the uncertainty in politics and uncertainty in the market, we stop building at the South Carolina facility at this time,” AESC said in a brief statement. While the company pledged to fulfill its commitment to establish 1,600 jobs and provide the promised investment, it did not stop giving a timetable for the appeal.
Policy is a shadow of progress
South Carolina Governor Henry McMaster admitted that the company was uncomfortable, citing possible changes in the federal tax incentives for electric cars and tariff policies looming from the administration of former President Donald Trump, who is a campaign to return to the White House.
McMaster said: “What we do is urge caution – let things play because all these changes occur,” McMaster said. His remarks reflect a broader concern among economic development leaders: that the loss of federal tax credits, including the central consumer incentive of $ 7,500, may sharply reduce demand and threaten the stability of the supply chain.
The Florence Factory is part of a larger strategy by BMW and AESC to localize batteries production for Neue Klasse EVS. BMW $ 700 million has invested in the batteries assembly in Woodruf, South Carolina, where AESC cells were set to be installed. This facility remains on the right path to Fateh in 2026, according to a company spokesman.
Limbing aspirations
AESC has already started triming her original ambitions in South Carolina. Initially, two factories on Florence were planned, the company announced earlier this year that one factory is sufficient to meet the needs of BMW. This decision prompted the state to withdraw 111 million dollars from the incentives associated with the second phase that has now been canceled. However, AESC is still eligible for more than $ 255 million in general financing-including $ 135 million in grants and $ 121 million in state bonds-which South Carolina says it is not at risk currently despite temporary suspension.
To date, AESC says it has invested more than a billion dollars in the project. With other active plants in Tennessee, Kentucky, and abroad – including China, Germany and the United Kingdom – the company’s move indicates that the political climate in South Carolina may give international investors a temporary pause.
BMW plans continue without deterrence
BMW, for its part, is still steadfast. AESC car stop will not delay its schedule. The Woodruff battery assembly plant is scheduled to start in 2026, and the cells of Florence are still part of that plan – albeit now from one factory instead of two.
These cells will be decisive for the BMW Neue Klasse platform, which features a 800 -volt structure designed to enable charging faster and increased range. The vehicles that were built at the BMW factory in Spartanburg and San Luis Potosi in Mexico will receive these US batteries produced by the United States.
[Source: Fortune]