Automotive Energy Supply Corp. (AESC), a Japanese battery manufacturer, has paused construction of its planned $1.6 billion facility in Florence, South Carolina, citing “policy and market uncertainty.” The factory was intended to supply battery cells for electric BMW vehicles manufactured in the state.
In a statement released Thursday, AESC confirmed the temporary suspension:
“Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time.”
Although the company did not specify which policies were causing concern, South Carolina Governor Henry McMaster pointed to potential disruptions stemming from evolving federal tax credit rules, tariff uncertainties, and the shifting regulatory landscape under former President Donald Trump’s administration.
“What we’re doing is urging caution — let things play out because all of these changes are taking place,” McMaster said.
AESC emphasized that the pause is temporary and reaffirmed its commitment to the project, which includes the creation of 1,600 jobs and an overall investment of $1.6 billion. The company has already spent $1 billion on the Florence plant to date. A timeline for resuming construction was not disclosed.
The South Carolina plant is a critical part of BMW’s electric vehicle strategy. BMW is currently building its own battery assembly facility near its major Greer auto plant, and despite the AESC delay, the automaker says its 2026 launch schedule remains unchanged.
AESC, which also operates in Tennessee, Kentucky, China, the UK, France, Spain, and Germany, did not announce any changes to its other ongoing U.S. or international projects.
The suspension highlights how shifting U.S. policy — particularly around EV tax incentives and foreign trade relations — is creating uncertainty for global manufacturers investing in American clean energy infrastructure.
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