Submitted by Sorin61 t3_y87f6v in technology
FriendlyDespot t1_iszawaw wrote
Reply to comment by lukanz in BMW will build a $1.7 billion EV battery factory in South Carolina by Sorin61
Presumably because the United States is BMW's second-biggest market, with 40% more sales than in Germany, and so they won't want to get caught up in another trade conflict. BMW is also the largest vehicle exporter by value in the United States, and paying tariffs to import assembled batteries from elsewhere, and then paying tariffs again when exporting the vehicle doesn't make a lot of sense for them.
And, of course, South Carolina workers are more acquiescent, and the state government much less interested in labour rights than other jurisdictions. BMW also gets obscene tax benefits from the state, because South Carolinians love nothing more than giving corporate handouts.
guy_incognito784 t1_iszecvg wrote
Well that and I'm guessing BMW wants buyers to qualify for the federal EV tax credit since cars must use batteries produced in the US in order to qualify for the federal tax credit.
Tons of other auto manufacturers are doing the exact same thing, the change in the tax code is working as intended.
juggarjew t1_it39xb9 wrote
Building the batteries here will also allow them to qualify for the full tax credit, there are multiple reasons at play here.
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