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Battery maker pauses construction of $1.6bn South Carolina plant
09 June 2025
Envision AESC electric car battery production plant logo and employees during the presidential visit of Emmanuel Macron, in Douai, northern France, on 3 June, 2025 (Image: Accorsini Jeanne/Pool/ABACA via Reuters Connect)
Electric car battery maker AESC has paused construction of a $1.6 billion facility in Florence County, South Carolina.
The Japanese manufacturer said that policy and market uncertainty were behind its decision, which came amid ongoing speculation about the future of US trade tariffs, and the ending of electric vehicle tax credits via US President Donald Trump’s ‘Big Beautiful Bill’.
AESC announced plans in 2022 to build the plant, which will supply battery cells for German car maker BMW, in 2022. In 2023, it announced an expansion of the plant, representing a total investment of $1.6 billion.
But in a statement to media, the company said it would now pause construction, although it plans to resume work “once circumstances stabilise”, having already invested $1 billion in the facility, which was originally due for completion in 2026.
It added that it “fully intends” to meet its commitments on the construction of the plant although it is not clear at this stage when construction might resume.
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