German-based automotive company Bayerische Motoren Werke AG (SG:BMW) announced on Monday that the company’s most recent BMW battery factory, which opened nearly seven months ago in China, will be expanding its facilities.
The expansion is part of a joint venture between Brilliance China Automotive Holdings Ltd. (1114:HKSE) and BMW, known as BMW Brilliance Automotive (BBA).
The factory will be producing batteries for BMW’s fifth generation of its eDrive technology vehicle, the fully-electric BMW iX3. BMW describes these new batteries as being “new, more powerful batteries.”
The new BMW iX3 will be produced in a factory not too far away from where the batteries will be made, by 2020.
According to a member of the Board of Management for the company, Oliver Zipse the new expansion will allow BMW to “further increase the capacity of [its] local battery production” which will “[enable] [the company] to follow the increasing demand for electromobility in China.”
According to a recent article from elektrek, BMW also has plans to increase the production of its electric BMW i-vehicle by 54%, at the company’s plant in Leipzig, Germany.
Zipse has also said that the ability to fully utilize the factory is a top priority for BMW and that the company is “designing [its] production system so that [they] can build models with a fully or partially electric drive train or combustion engine on the same assembly line.”
The company was able to produce 400,000 vehicles for the market in China at its Tiexi and Dadong auto plants in 2017, which a 30% year-on-year increase.
BMW hopes that both Tiexi and Dadong will be able to produce approximately 520,000 units per year, starting in 2019.
Shares of BMW have fallen approximately 0.26% on Monday and have reached a high share value of $102.50 USD and a low of nearly $100.88.
Comparatively, the company closed at almost $101.44 on Friday.
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