AESC Pauses Battery Plant Construction in South Carolina

News Summary

Envision Automotive Energy Supply Co. (AESC) has announced a halt in the construction of its battery cell manufacturing plant in Florence, South Carolina, due to policy and market uncertainty. This decision delays the creation of approximately 1,600 jobs. The company has already invested over $1 billion into the facility but did not provide a new timeline for completion. Despite challenges, local leaders remain hopeful about the long-term commitment of AESC and the potential for future growth in the region.

South Carolina – Envision Automotive Energy Supply Co. (AESC) has announced a pause on the construction of its $1.6 billion battery cell manufacturing plant in Florence, South Carolina, delaying the creation of approximately 1,600 jobs. The work stoppage was confirmed on Thursday, marking two years since the groundbreaking ceremony held on June 7, 2023.

AESC cited “policy and market uncertainty” as the driving factors behind the decision. The company indicated it has already invested more than $1 billion into the facility but refrained from providing a new timeline for the plant’s completion. All construction activities will remain suspended until conditions stabilize in the market.

South Carolina’s Governor Henry McMaster noted that uncertainty stemming from Washington, D.C., particularly concerning policies and tariffs, has contributed significantly to this decision. He referenced recent fluxes in international trade policies and potential changes to electric vehicle tax credits outlined in proposed legislation as major concerns influencing AESC’s operations.

In addition to the main facility’s pause, AESC had previously announced plans for a second facility, which was projected to involve an additional $1.5 billion in investment and the creation of 1,080 jobs. This plan has also been halted, leading the South Carolina Fiscal Accountability Authority to withdraw previously set-aside bonds totaling $111 million for the proposed second facility.

Despite these setbacks, local economic leaders, including the CEO of the Florence County Economic Development Partnership, remain hopeful about AESC’s long-term commitment to the Florence region. They believe that while the current situation is challenging, it may afford the opportunity to enhance local infrastructure and foster growth in the Pee Dee area. They emphasized that the pause does not impact the initial phases of AESC’s operations, which is still projected to create over 1,600 jobs once completed.

AESC’s existing facility continues to move forward with plans to supply batteries for BMW’s facilities in Spartanburg and Mexico. BMW has already made significant strides in its own battery plant, investing $700 million, and plans to incorporate battery cells produced by AESC into its vehicles beginning in 2026.

AESC remains committed to the Florence project, indicating its intention to resume construction as soon as market conditions improve. The company has communicated its position effectively to local partners and the South Carolina state authorities, reinforcing its focus on eventual completion and job creation in the region.

This pause reflects broader trends in the electric vehicle market and concerns among manufacturers regarding regulatory environments and financial stability within the industry. As state and local policymakers work to adjust to the shifting landscape, the future of battery production and its impact on job creation remains uncertain.

Overall, while AESC’s immediate plans for expansion have been halted, the existing commitment to their initial plant and customer partnerships suggests that future developments may still remain positive for South Carolina’s business environment and the overarching electric vehicle market.

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• South Carolina Daily Gazette
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