BMW Invests €1.53 Billion to Build Next-Gen Electric SUVs in the USA, Starting with iX5 in 2026

In a bold move to accelerate its electric vehicle strategy, BMW has announced a €1.53 billion investment in its U.S. manufacturing operations, marking a pivotal shift in the German automaker’s EV roadmap. The investment will power the production of next-generation all-electric BMW SUVs at the company’s Spartanburg, South Carolina plant—already the largest automotive exporter by value in the U.S.

BMW will allocate €1 billion to upgrade the production lines and another €631 million to build a nearby battery assembly facility. The plan? By 2030, the Spartanburg facility will produce at least six fully electric SUV models, while continuing to roll out gasoline-powered vehicles.

The electric era begins in 2026 with the launch of the BMW iX5, a mid-size luxury electric SUV designed to compete with the Tesla Model X and Cadillac Vistiq. In 2027, the larger three-row BMW iX7 will follow, aiming to rival high-end SUVs like the Cadillac Escalade IQ. A coupe-style SUV, possibly named the iX6, is also expected to join the lineup.

Interestingly, BMW will build these EVs on its CLAR platform, which supports both combustion engines and electric drivetrains—unlike rivals who are creating EVs on dedicated electric-only platforms. However, these models will integrate core technology from BMW’s next-gen Neue Klasse EV platform, including high-efficiency motors, advanced power electronics, and new cylindrical batteries.

BMW promises its new battery tech will cut charging times by up to 30% and boost driving range significantly. While official numbers haven’t been released, future Neue Klasse EVs could reach up to 901 km (560 miles) of range on a single charge. With battery production localized in the U.S., BMW also positions itself to avoid the impacts of global trade fluctuations.

This investment signals BMW’s deep commitment to electrification in North America and positions the brand as a formidable player in the luxury EV space.