News Summary
AESC, a Japanese battery cell manufacturer, has declared a temporary halt in building its $1.6 billion battery plant in Florence, South Carolina. This decision follows two years of preliminary work and comes amid concerns over policy and market uncertainties. The construction was expected to create around 1,600 jobs, and state officials are voicing apprehensions about the implications of federal policy changes. AESC remains committed to its investment and job creation plans, though it aims to resume construction once conditions improve.
South Carolina – AESC, a Japanese-based company known for manufacturing battery cells, has announced a pause in the construction of its significant $1.6 billion battery plant in Florence, South Carolina. This decision, announced on June 5, 2025, comes after two years of preliminary work following the groundbreaking ceremony held on June 7, 2023.
The construction halt impacts the facility that was projected to generate approximately 1,600 jobs upon completion. AESC has already committed and invested over $1 billion into the project, but has cited “policy and market uncertainty” as the reason for the temporary suspension. The company has indicated that it plans to resume construction once market conditions stabilize.
AESC is determined to fulfill its long-term commitments, including its planned total investment of $1.6 billion and the establishment of 1,600 jobs in the upcoming years. Local and state officials, including South Carolina Governor Henry McMaster, have expressed concerns about uncertainties stemming from federal policies in Washington, D.C. affecting the construction timeline for the facility.
Further complicating matters, a proposal from the U.S. House aims to eliminate electric vehicle tax credits that currently benefit the electric vehicle industry, adding to the uncertainty faced by companies like AESC. Governor McMaster noted that fluctuations in tariffs and tax policies are contributing factors to the decision to pause construction and emphasized the importance of remaining calm and informed as the situation evolves.
This announcement follows AESC’s previous decision to halt an expansion plan for a second facility, which would have involved an additional investment of $1.5 billion and the creation of 1,080 jobs. AESC has strong ties with BMW, which has contracted the company to produce battery cells for its U.S. manufacturing facilities. BMW has already invested $700 million into its own battery assembly plant located in Woodruff, South Carolina, which is scheduled to begin operations in 2026.
AESC aimed to supply batteries for both BMW’s Spartanburg plant and a planned facility in Mexico that is also going into development. The delay in construction is anticipated to have significant implications for local economic development in the Pee Dee region. However, officials remain hopeful for a resolution that would ensure the project’s future viability.
In response to the recent construction delay, the South Carolina Department of Commerce has reiterated its commitment to supporting AESC and the broader development project. The state has allocated over $255 million in incentives to bolster the project, which includes $135 million designated for local project costs and $120 million for necessary off-site infrastructural upgrades.
As the future of AESC’s Florence plant and its associated economic impacts hang in the balance, both local authorities and company representatives will be closely monitoring the evolving market and policy landscape. With continued support from state officials and a commitment from AESC to its planned investments, there is a cautious optimism for the potential of the project to resume and ultimately contribute to the region’s economic revival.
Deeper Dive: News & Info About This Topic
- SC Daily Gazette
- Wikipedia: Electric Vehicle
- WPDE
- Google Search: AESC Florence plant
- Post and Courier
- Encyclopedia Britannica: Battery
- Wall Street Journal
- Google News: South Carolina battery plant
Author: STAFF HERE FLORENCE WRITER
FLORENCE STAFF 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.
