Construction on South Carolina-based electric vehicle battery facility halts temporarily

In a recent development, electric vehicle battery company AESC has temporarily halted construction on its manufacturing plant under construction near Florence, South Carolina. This announcement comes four months after the battery cell manufacturer pulled back on earlier plans to expand the plant beyond its original scope.

The facility, which has already received over $1 billion in investment from AESC, was expected to create 1600 new jobs for South Carolinians. However, the pause in construction will delay this job creation promise.

Governor Henry McMaster attributed the pause to uncertainty in Washington, D.C., as a reason for the halt. He urged patience, stating that changes are happening and they will work out.

Meanwhile, the automotive industry is experiencing a shift in strategy. Automakers have moved away from goals of going all-electric in favor of a mix of electric and plug-in hybrids. This trend, along with the lag in growth of the electric vehicle industry, has led to multiple setbacks, including canceled investments.

Despite these challenges, electric vehicle sales have continued to rise both nationally and globally. BMW, for instance, is still on track with its battery assembly plans, which are scheduled to begin in 2026.

The repeal of consumer tax credits for electric vehicles, as passed by the U.S. House, could further slow progress in the electric vehicle industry. However, the remaining $121 million in bonds and $135 million in grants offered as an initial incentive to lure AESC to South Carolina remain unaffected, according to the state Department of Commerce spokeswoman Alex Clark.

AESC has reaffirmed its commitment to invest $1.6 billion and create 1600 jobs in the coming years. The company did not provide a new timeline for the resumption of construction.

Despite the pause in construction at AESC's facility, South Carolina's economy, according to Governor McMaster, is still growing, despite the ups and downs. He expressed confidence in the state's economic growth, emphasizing that changes are happening and they will work out.

BMW, on the other hand, is moving forward with its plans. The German automaker has contracted with AESC to produce battery cells for its U.S. manufacturing facilities in the Upstate. These developments underscore the ongoing interest in the electric vehicle industry in South Carolina.

Construction on South Carolina-based electric vehicle battery facility halts temporarily