EV battery manufacturer’s new $1.5B expansion at South Carolina facility is second in 3 months

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An electric vehicle battery technology company is launching a massive expansion of its Florence County facility.

AESC is expanding its lithium-ion electric vehicle battery manufacturing operations in Florence County with a $1.5 billion investment that will create 1,080 new jobs, according to a news release.

This investment follows AESC’s initial announcement in December 2022 and expansion announcement in December 2023, resulting in a total investment of $3.12 billion and supporting 2,700 new jobs across the local community, the release stated.

With this expansion of AESC’s strong production footprint in the United States, the company will construct a second state-of-the-art electric vehicle battery manufacturing facility adjacent to the first building which broke ground in June 2023. The AESC campus is located in the more than 1,000-acre Florence Global Technology Park.

“We greatly value our partnership with South Carolina and Florence County as we strengthen our work together through this latest expansion that enhances our commitment to create high value jobs in the region and invest in the state,” AESC CEO Shoichi Matsumoto said in the release. “South Carolina is a crucial part of our strategy to power next generation electric vehicles for customers across the U.S. by manufacturing high-performance, longer-range EV batteries locally. Through our collaborative efforts, I am excited that we are able to support thousands of new workers and increase both AESC and South Carolina’s leadership in providing advanced clean energy transportation solutions.”

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In 2022, the company announced a multi-year partnership with BMW to supply technology-leading battery cells to be used in the next generation electric vehicle models produced at Plant Spartanburg. AESC’s latest expansion will extend the partnership to additionally provide electric vehicle battery components for BMW Group’s Mexico Assembly Operations.

Operations are expected to be online in 2027.

At meetings on March 20 and March 26, 2024, the Joint Bond Review Committee and the State Fiscal Accountability Authority authorized the issuance of up to an additional $111 million in state general economic development bonds in support of the expanded project, as well as the costs of issuance, according to the release. The bond proceeds will be used to offset the costs of a county-owned warehouse building, site preparation, on-site roads, off-site road and water improvements, and additional expansion of the training center that will serve both manufacturing facilities at the Florence site.

The Coordinating Council for Economic Development also approved job development credits related to the project.

“AESC’s unwavering dedication to Florence County marks a transformative moment, now bringing forth a total creation of 2,700 jobs and injecting over $3.12 billion in capital investment into the local economy,” Florence County Council Chair William Schofield said in the release. “As a global leader in advanced lithium-ion battery technology, AESC’s expansion signifies more than just economic growth — it symbolizes a commitment to sustainable innovation. Beyond the immediate impact on job creation, AESC’s presence will catalyze a ripple effect across our local economy.”