The BMW Group announced a €800 million ($855 million) BEV-related investment at its Plant San Luis Potosí in Mexico.

The company intends to spend €500 million ($855 million) on a new assembly center for high-voltage batteries, which will produce the sixth generation battery packs (cylindrical battery cells) for the upcoming "Neue Klasse" all-electric cars.

The remaining funds will be used to incorporate the new vehicle architecture ("Neue Klasse") and start production of undisclosed yet new all-electric cars at Plant San Luis Potosí from 2027 onwards.

BMW Group Plant SLP (01/2023)
BMW Group Plant SLP (01/2023)

Let's recall that previously the company confirmed "Neue Klasse" BEV production at its new Hungarian plant in Debrecen (under construction), starting in 2025, which will be followed by the main plant in Munich, Germany. As we understand, the site in Mexico will be the third one assigned to the new architecture.

According to BMW, the investment will bring around 1,000 jobs to Plant San Luis Potosí, including 500 in the battery system area.

Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production, in San Luis Potos said:

“We are systematically gearing our production network towards electromobility. In Mexico, we are investing 800 million euros in our plant and creating around 1,000 new jobs,”

“The first cars of the NEUE KLASSE will come off the production line at our plant in Debrecen, Hungary, starting in 2025, followed by the main plant in Munich. We will achieve additional volumes by integrating the NEUE KLASSE at Plant San Luis Potosí from 2027 onwards.”

The group does not say what might be the manufacturing capacity of electric cars in Mexico. Currently, the plant has around 3,000 and produces BMW 3 Series, 2 Series Coupé, and the new M2, for the global market.

It seems that Mexico is attracting a lot of EV investments nowadays, including Ford (expansion of the Mustang Mach-E production), General Motors, and potentially also Tesla. Nidec is expected to produce electric drive units in the country, while some battery manufacturers consider a battery factory investment (like CATL).

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