BMW invests $1.41b to expand battery plant

German premium automaker BMW is investing around 10 billion yuan ($1.41 billion) to expand the battery production facility at its manufacturing base in Shenyang, capital of Liaoning province.

BMW made the announcement on Friday, saying that its joint venture BMW Brilliance will make the investment to accelerate its shift towards electrification.

Jochen Goller, president and CEO of BMW Group Region China, said the investment is the latest demonstration of the carmaker's confidence in the Chinese market and its commitment to promoting cooperation between the two countries.

BMW Brilliance's battery production facility started operations in 2017. The facility, which was the first of its kind built by international premium carmakers, expanded in 2020.

The 10 billion yuan investment announced on Friday marked another major milestone of its localization in China, its largest market in the world.

Earlier this year, its Shenyang-based Lydia plant, which cost 15 billion yuan, went into operation.

Oliver Zipse, chairman of BMW Group, said China is one of its most strategically important markets.

He made the remark when he visited China earlier this month as a member of German Chancellor Olaf Scholz's business delegation.

"We are optimistic about the medium- and long-term prospects of the Chinese market. The BMW Group is unwaveringly committed to China and will continue its win-win-partnerships with local companies," Zipse said.

He said China has grown into a main driver in many of BMW's strategic areas including digitalization, electrification and sustainability.

China is the world's largest market for electric vehicles and plug-in hybrids.

Sales of electric cars and plug-in hybrids stood at 714,000 units last month, up 81.7 percent year-on-year, according to the China Association of Automobile Manufacturers. They accounted for 28.5 percent of total vehicle deliveries in October.

NEV sales from January to October reached 5.28 million units, up 110 percent year-on-year. They are expected to reach 6.5 million this year, said the CAAM.