AESC Pauses Battery Cell Facility Construction in Florence

News Summary

Envision Automotive Energy Supply Co. (AESC) has announced a halt in the construction of its battery cell manufacturing facility in Florence, delaying around 1,600 jobs. The pause is attributed to policy and market uncertainties, despite the company’s commitment to a total investment of $1.6 billion. South Carolina’s Governor noted that interruptions in the electric vehicle industry influenced this decision. AESC plans to resume construction once conditions improve, but the current delay raises concerns about future job growth in the region, which relies heavily on the burgeoning EV sector.

Florence, South Carolina – Envision Automotive Energy Supply Co. (AESC) has announced a pause in the construction of its battery cell manufacturing facility in Florence, a move that delays the creation of approximately 1,600 jobs. The construction halt was confirmed on Thursday, following two years of activity since the groundbreaking of the site.

The spokesperson for AESC cited “policy and market uncertainty” as the reasons behind the pause. To date, the company has invested over $1 billion into the facility’s development, and despite the construction stoppage, AESC remains committed to an overall investment of $1.6 billion. However, a new timeline for the project’s completion or job creation was not provided.

South Carolina Governor Henry McMaster pointed out that uncertainties related to tariffs and potential changes in federal tax credits have contributed to the decision to halt construction. The electric vehicle (EV) industry is currently experiencing slow growth and a series of setbacks, leading to canceled investments both nationally and within South Carolina.

AESC had previously announced plans for a second building at the site, which would have added 1,080 additional jobs and required a further $1.5 billion investment. However, the company retracted those plans, resulting in the state withdrawing its offer of $111 million in incentives tied to that proposed facility. Nevertheless, the current state incentives amounting to $121 million in bonds and $135 million in grants for the ongoing project remain unaffected by the construction pause.

The facility in Florence was intended to supply battery cells for BMW’s manufacturing plants in Upstate South Carolina and in Mexico. BMW has plans to begin assembling six fully electric vehicles by the year 2030, coinciding with the development of its own $700 million battery plant in Woodruff.

Despite the current challenges for AESC and the broader EV industry, Governor McMaster expressed optimism that South Carolina’s economy continues to prosper. The construction halt at AESC follows a previous similar suspension at Volvo’s Lowcountry plant, which was attributed to ongoing supply chain issues affecting the automotive sector.

AESC has stated it plans to resume construction “once circumstances stabilize,” although specific conditions that would lead to a resumption have not been detailed. The pause raises concerns about the future trajectory of job growth in the region, as the flourishing EV sector is seen as vital for economic development.

With the EV market under pressure, the implications of the construction pause extend beyond job creation in Florence. This situation highlights the unpredictable nature of the EV industry, where policy, market conditions, and supply chain dynamics can significantly impact investment and development planning.

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Additional Resources

• SC Daily Gazette: Electric Vehicle Battery Company Halts Construction
• Wikipedia: Electric Vehicle Battery
• WPDE: AESC Plant Construction Stop
• Google Search: Electric Vehicle market
• The State: AESC Construction Pause
• Google Scholar: Electric Vehicle Industry
• Post and Courier: AESC Construction Pause
• Encyclopedia Britannica: Electric vehicle
• WYFF: EV Battery Maker Suspends Construction
• Google News: South Carolina jobs

Author: STAFF HERE FLORENCE WRITER

The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.