BMW has started work on the new battery factory in Germany

Bayerische Motoren Werke AG (BMW) has started work on its new battery factory for electric vehicles in Germany, a spokesperson for the luxury carmaker confirmed to DPA.

The plant, located in Bavaria, would produce up to 600,000 high-voltage batteries annually after completion of the works and would have approximately 1,600 employees.

Approvals for the construction work were obtained last week, but critics complain about the loss of agricultural land of high natural value. However, in the referendum that took place last fall, most Strasskirchen residents voted in favor of building the factory, notes Agerpres.

According to BMW, the Bavarian plant was selected from a list of 20 possible locations. The final choice was determined by the proximity of the new plant to other BMW plants in Bavaria, where the batteries will be brought.

Last month, BMW announced that it intends to make the largest investments in the company's history in 2024, and therefore expects a slight decline in profit before taxes.

Planned investments include the construction of battery factories in Germany, China, Mexico and the United States, as well as a new car plant in Hungary and the launch of the New Class platform for all of the company's electric vehicles (EVs), announced Walter Mertl, CFO of BMW.

The company is also investing in its Munich factory and in electrifying the Oxford plant of its British Mini subsidiary, Mertl added.

He explained that the massive investments in the New Class platform will bring electric vehicles to the level of cars with combustion engines in terms of profitability and costs.

Globally, BMW delivered 2.55 million vehicles last year, generating sales of 155.5 billion euros and a profit before taxes of 17.1 billion euros, according to the company.

In 2024, BMW expects a slight increase in sales of both luxury cars and all-electric vehicles. In 2023, all-electric vehicles accounted for 15% of all BMW sales.