BMW bets big on America, will build electric iX5 and iX7 SUVs in South Carolina

In a major strategic shift for its electric vehicle ambitions, BMW is pouring $1.7 billion into its American operations. The German automaker confirmed plans to manufacture the next generation of its popular SUVs as all-electric models in the United States.

The sprawling South Carolina facility, already the largest US automotive exporter by value, is preparing for a major overhaul. BMW has earmarked $1 billion to retool the assembly lines and another $700 million to construct a brand-new battery assembly facility nearby. The goal is ambitious: by 2030, the factory will have at least six fully electric SUV models rolling off its production lines, alongside its existing combustion-engine vehicles.

The first of these new American-made electric vehicles will be the BMW iX5, which will go into production in 2026. This mid-size electric SUV will likely serve as a successor to the current iX model and will face off against established players like the Tesla Model X and the new Cadillac Vistiq. Following closely behind, the full-size, three-row BMW iX7 is scheduled to arrive in 2027. As the brand's first large all-electric SUV, it will challenge luxury titans like the Cadillac Escalade IQ. An electric coupe-style SUV, presumably called the iX6, is also expected to join the lineup later.

BMW is taking a unique, and some might say cautious, approach to its engineering. While competitors are developing dedicated, EV-only platforms, the upcoming iX5 and iX7 will be built on the company's existing CLAR architecture. This flexible platform was designed from the outset to accommodate both traditional gasoline engines and all-electric powertrains. This strategy allows BMW to build both types of vehicles on the same line, but it differs from the ground-up EV designs of its rivals.

Despite using the current, some might call it "older" architecture, these new electric SUVs will be far from old-fashioned. BMW plans to infuse them with the latest technology borrowed directly from its forthcoming "Neue Klasse" dedicated EV platform. This means the American-built iX5 and iX7 will get the best of the new technology, including highly efficient electric motors, advanced electronic controllers, and a new generation of cylindrical batteries. This blend of a proven platform with next-generation EV components should deliver a powerful and efficient driving experience.

BMW has stated that its new battery technology will slash charging times by as much as 30% compared to its current EVs. The use of advanced materials like silicon carbide semiconductors is also expected to boost overall efficiency, leading to more range from every charge. While specific range figures for the iX5 and iX7 have not been released, BMW has hinted that future Neue Klasse vehicles could achieve up to 560 miles on a single charge, setting a new benchmark for electric cars. By localizing production of both the vehicles and their batteries in the US, BMW also cleverly shields itself from the unpredictable nature of international trade tariffs.

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