BMW is undertaking a significant investment of $855 million at its San Luis Potosi plant, with $540 million allocated specifically for the establishment of a battery facility. Additionally, the carmaker plans to expand the assembly and logistics areas by 10,000 sq.m and the body shop by 20,000 sq.m, enhancing the plant’s capabilities to accommodate the production of high-voltage batteries in close proximity to vehicle assembly.
This strategic move aligns the Mexican plant with BMW’s global strategy of integrating high-voltage battery plants with vehicle assembly locations. The construction of battery facilities is underway not only in Mexico but also in Debrecen (Hungary), Shenyang (China), Woodruff near Spartanburg (USA), and Irlbach-Straßkirchen (Germany). BMW asserts that this approach fortifies production resilience against unforeseen geopolitical and economic challenges, a concern prevalent in the volatile automotive industry landscape.
The localization of battery production not only bolsters production security but also contributes to environmental sustainability by reducing the carbon footprint associated with inbound transport, particularly concerning the weighty lithium batteries utilized in vehicles.
BMW’s forthcoming Neue Klasse will leverage novel round lithium-ion battery cells, developed expressly for the sixth generation of BMW eDrive technology. This advancement promises to boost energy density by over 20%, while the production of these cells is expected to slash carbon emissions by up to 60%, owing to the suppliers’ reliance on renewable energy sources and increased utilization of recycled materials such as lithium, cobalt, and nickel.
The debut of the Neue Klasse is slated for late 2025 at the Debrecen plant in Hungary, with subsequent production of the sedan scheduled to commence in Munich in 2026.
Embracing digitalization, BMW has invested in cutting-edge technologies such as artificial intelligence, machine learning, and data analytics to enhance flexibility in logistics operations at the San Luis Potosi plant. Harald Gottsche, President and CEO of BMW Group Plant San Luis Potosí, underscores the company’s commitment to environmental stewardship while positioning itself as a leader in the production of fully electric vehicles and high-voltage batteries in Mexico.
The appointment of Raúl Gamboa as head of production control, production system, and logistics underscores BMW’s dedication to innovation and problem-solving within the Mexican supply chain. Since its inception in 2019, the San Luis Potosi plant has been instrumental in producing BMW’s 3 Series Sedan, along with the BMW 2 Series Coupé and the BMW M2 models for the global market. The plant’s strategic location in central Mexico, coupled with robust logistics infrastructure and proximity to key transport routes and ports, reinforces BMW’s confidence in its long-term operational efficiency and competitiveness.
