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BMW Group is expanding its manufacturing and supply chain operations in Mexico with the construction of an 80,000 sq.m battery manufacturing facility next to its assembly plant in San Luis Potosi. The facility, which will produce the Neue Klasse electric sports activity vehicle starting in 2027, represents a $540m investment out of an overall $855m investment at the plant. The expansion also includes additional space for assembly, logistics, and the body shop. BMW is aiming to bring the Mexican plant in line with its international locations of high-voltage battery plants as close to vehicle assembly as possible. The carmaker believes this approach will safeguard production and reduce the carbon footprint of inbound transport. The Neue Klasse will use new, round lithium-ion battery cells that will increase energy density by more than 20% and reduce carbon emissions by up to 60%. The plant in San Luis Potosí currently produces the BMW 3 Series Sedan, BMW 2 Series Coupé, and BMW M2 models for the global market. The decision to site the plant in San Luis Potosi was influenced by logistics, including supplier location, outbound transport links, and infrastructure. The plant is located in central Mexico, with access to ports on both the west and east coasts, as well as road and rail links to the US and Canada.
