Categories: Cars

BMW Brings First Lithium Battery Production to Mexico in San Luis Potosí Expansion

During a press event at the San Luis Potosi plant in Mexico, BMW confirmed that it will begin pre-series battery production by the end of 2025. In order to reach the deadline, the German automaker is investing $800 million to expand the plant, paving the way for its first electric vehicle in 2027.

A Major Expansion In Works

The new expansion, spanning 80,000 square meters, is designed to accommodate BMW’s high-voltage battery production. By taking battery assembling in-house, BMW is adding crucial capacity to its global network of EV battery plants. Initially, there will be one shift working on the battery assembly line, but a second shift will be added in the future bringing the total capacity to 140,000 battery packs. BMW says this is region’s first lithium battery plant.

Harald Gottsche, President and CEO of the BMW Group at the San Luis Potosí Plant, also emphasized that sustainability and corporate responsibility is at the core of this relatively new factory. The company has set ambitious targets to reduce carbon emissions across its global operations.

BMW’s 2030 Vision: Reducing CO₂ Emissions by 80%

In alignment with BMW Group’s 2030 CO₂ reduction objectives, the San Luis Potosí plant aims to cut production-related emissions by 80% per vehicle, transforming it into one of BMW’s most sustainable production sites worldwide. Additionally, Gottsche and other BMW executives highlighted the importance of a local supply chain, noting that 85 Mexican suppliers are currently delivering parts to the plant. This supplier base, primarily located in Mexico’s Bajío region, enhances BMW’s supply chain stability while supporting local economic growth.

The plant expansion also includes a significant enlargement of the body shop by nearly 20,000 square meters and a similar expansion of the assembly and logistics areas. Efforts to double the photovoltaic output at the San Luis Potosí plant are underway, aiming to generate over 20% of the plant’s electrical needs directly on-site.

The BMW Group plant in San Luis Potosí started production in 2019. Around 3,700 employees currently produce the BMW 3 Series Sedan as well as the BMW 2 Series Coupe and the BMW M2 models for the global market. There are no plans in place to localize production for engines or transmissions which are still imported from Europe.