(CTN NEWS) – BMW announced Friday that it would invest 800 million euros ($866 million) in the central Mexican state of San Luis Potosi to develop high-voltage batteries and completely electric “Neue Klasse” vehicles.
BMW said 500 million euros of the Mexico investment would go to the battery assembly center on the carmaker’s plant grounds, employing 500 more people.
It promised 500 more employment elsewhere.
Plant head Harald Gottsche told Reuters that the remaining 300 million euros will be used to expand the body shop and develop a battery pack manufacturing line.
“We will start building, constructing the additions and the new battery assembly at the beginning of 2024,” he stated.
BMW’s first fossil-free facility is in Hungary. Gottsche said the Mexico plant was increasing solar generation and switching to biomethane from natural gas.
Gottsche stated, “We want to beat the Hungary factory.”
Manufacturers worldwide are complying with stricter environmental laws to reduce climate change.
Mexico aims to electrify 50% of its auto output by 2030.
Gottsche estimated 30% of BMW’s Mexico sales were hybrid or electric.
Gottsche remarked, “We will need considerably more renewable energy” to switch.
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