AESC Pauses Construction at Florence EV Factory Amid Market Uncertainty

News Summary

AESC has halted construction at its Florence, SC facility, investing over $1 billion for battery cell production due to declining consumer interest in electric vehicles and market volatility. The pause will last until market conditions improve, affecting 1,600 job projections. Recent AAA surveys indicate waning consumer interest, contributing to the uncertainty in the EV sector, exacerbated by policy disputes.

Florence, South Carolina – AESC (Envision Automotive Energy Supply Co.) announced on Thursday that it has paused construction at its manufacturing facility located in Florence due to ongoing market and policy uncertainties affecting the electric vehicle (EV) sector. This decision halts further development at a site where the company has invested over $1 billion and is projected to create approximately 1,600 jobs upon completion.

The pause in construction is set to remain in effect until market conditions stabilize, as the company assesses the impacts of recent developments in the EV market. AESC is a prominent player in the industry, known for its production of high-performance batteries intended for zero-emission electric vehicles and energy storage systems.

Consumer interest in electric vehicles has significantly declined, as indicated by a recent AAA survey revealing that only 16% of Americans are “likely” or “very likely” to purchase an electric vehicle. This figure marks the lowest recorded level since 2019. Additionally, the proportion of respondents who are “unlikely” or “very unlikely” to buy an EV increased from 51% in 2022 to 63% in 2023. This hesitance can be attributed to various factors, including the high costs associated with battery repairs, the steep price of EVs, and concerns regarding their viability for long-distance travel.

AESC’s announcement comes at a time when the electric vehicle industry is facing heightened scrutiny and uncertainty, exemplified by a public disagreement between President Donald Trump and Elon Musk concerning a proposed bill that could eliminate electric vehicle tax credits. South Carolina Governor Henry McMaster has also acknowledged the effects that changing tariffs and tax policies have on the electric vehicle market, contributing to the prevailing uncertainty and volatility.

The Florence facility is designated to produce battery cells for BMW’s manufacturing plants, which are on track to assemble six fully electric vehicle models by 2030. AESC had previously paused plans for an expansion of the Florence site, which would have involved an additional investment of $1.5 billion and the creation of 1,080 more jobs, indicating the broader difficulties that companies in the EV sector are currently experiencing.

In support of AESC’s substantial investment, South Carolina has committed over $255 million in incentives aimed at aiding the construction project, including funds allocated for project costs and infrastructure improvements. Despite the current pause, AESC has expressed intentions to resume construction in the future. However, the company has not provided a new timeline for when work will recommence, as they continue to monitor market developments.

The situation reflects a wider trend of production suspensions among various companies in the electric vehicle industry, underscoring the challenges faced due to fluctuating consumer demand and shifting regulatory frameworks. As the market continues to evolve, the future of AESC’s Florence facility remains contingent on stabilizing market conditions and renewed consumer interest in electric vehicles.

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Additional Resources

• WPDE News
• Wikipedia: Electric Vehicle
• The State
• Google Search: Electric Vehicles
• SC Daily Gazette
• Google Scholar: Electric Vehicle Market
• Post and Courier
• Encyclopedia Britannica: Electric Vehicles
• Drone Life
• Google News: Electric Car News

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.