Shock Pause: $1.6B EV Battery Plant Construction Frozen in South Carolina, 1,600 Jobs Hanging in the Balance
AESC suspends its Florence County EV battery factory construction, citing market uncertainty—what this means for local jobs and BMW’s supply chain.
- $1.6 billion: Planned total investment by AESC in South Carolina.
- 1,600 jobs: Promised roles now temporarily on hold.
- $1 billion+ already invested in Florence facility buildout.
South Carolina’s electric vehicle ambitions just hit the brakes.
AESC, the international battery manufacturer powering major BMW electric vehicle (EV) plants, has dramatically halted construction on its much-anticipated Florence County gigafactory. The move leaves $1.6 billion in investment—and 1,600 jobs that local residents were banking on for a brighter future—in limbo.
The project was initially hailed as a gamechanger for the Palmetto State’s growing reputation in EV manufacturing. With the plant, BMW’s bustling Spartanburg County factory would gain a local supply for high-tech batteries, boosting U.S. EV output in an intensely competitive global market. But now, uncertainty surrounding market conditions and shifting government policy have slammed the brakes on progress.
Why Did AESC Halt Construction on Its New Battery Plant?
AESC painted a cloudy picture, pointing to “policy and market uncertainty” as the main culprit. Industry insiders note the EV sector has seen shifting government incentives, unpredictable demand swings, and global supply chain disruptions in 2025. AESC, committed to eventually investing $1.6 billion, has already poured over $1 billion into its South Carolina site. But until clearer skies appear, hammers and cranes will sit idle.
What Does This Mean for South Carolina’s Workforce?
The suspension directly threatens 1,600 much-needed jobs. Local leaders have pushed hard for advanced manufacturing positions like these—promising stable, high-paying roles for residents. Now, Florence County workers must play a waiting game, with their economic hopes tied to volatile global forces.
How Will This Impact the U.S. EV Market?
This pause doesn’t just shake South Carolina. With BMW‘s U.S. EV facility eyeing AESC as a key battery supplier, the delay could ripple into broader production plans. U.S. automakers are under pressure to scale up battery manufacturing quickly to meet ambitious electric vehicle rollout goals. Any hiccup in domestic supply increases reliance on vulnerable overseas sources—a challenge Tesla and other industry leaders continue to navigate.
What Happens Next? How Can Construction Resume?
AESC says they’re hitting pause—not pulling out. The company signals full intent to meet its investment and hiring targets once the environment stabilizes, hinting at behind-the-scenes negotiations. Industry analysts will watch for cues from policy moves in Washington D.C. and shifts in global demand. In the meantime, local officials continue to work with AESC leadership to keep hopes alive for the transformative project.
For now, South Carolina residents—and the entire U.S. EV supply chain—wait anxiously as the future of this gigafactory remains parked in uncertainty. Continued investment, innovation, and supportive policy will be key to unlocking the next phase of American electric vehicle growth. Stay tuned to Reuters and CNBC for live developments.
Don’t let the story stop here! Stay informed—here’s what you can do as the EV revolution evolves:
- ✔️ Track updates on government EV incentives
- ✔️ Watch BMW and AESC for breakthrough announcements
- ✔️ Follow global EV market trends on trusted outlets
- ✔️ Engage with workforce development programs in your area
