BMW to invest RMB10b for new battery production plan in China | Manufacturing Asia
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Rendering of the upcoming Shenyang plant. Image source: BMW

BMW to invest RMB10b for new battery production plan in China

The batteries will be crucial in the planned local production of its Neue Klasse EVs by 2026.

German carmaker BMW Group is investing RMB10b to construct a new battery production plant in mainland China meant to power its next generation of electric vehicles (EVs) starting 2026.

BMW has broken ground on a new factory in Shenyang, an industrial hub in Liaoning province in northeastern China, set to manufacture sixth generation high-voltage battery cells roughly three years from now. 

The batteries will be used for its Neue Klasse EV models which it also plans to manufacture locally beginning 2026, the company announced on Thursday. 

“From a small assembly facility with a limited number of units, our plants in Shenyang have developed into our largest production location worldwide,” said Milan Nedeljković, member of BMW’s board of management. “I am delighted to announce the local production of the Neue Klasse in China.”

The upcoming Shenyang facility will add to the firm’s existing EV factories back home in Germany where it produces electronic components and high-voltage batteries in Dingolfing, Leipzig and Regensburg. 

BMW said it plans to deploy new battery assembly sites in Hungary, Mexico and the US in the next few years to power Neue Klasse models as the automaker aims to expand local production across its major markets globally. 

In preparation for the Neue Klasse rollout, the automaker built an electromobility ecosystem in China covering research and development, supply chain, as well as production of batteries and EVs.

It is also expanding its network of suppliers in the country as part of what it referred to as a “local for local” strategy.

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