Billion-dollar battery plant pauses construction in US amid electric vehicle, tariff uncertainty
NEW YORK: A Japanese company has halted construction on a US$1.6 billion factory in South Carolina to help make batteries for electric BMWs, citing 'policy and market uncertainty,' reported Xinhua quoting the Associated Press.
'While Automotive Energy Supply Corp. (AESC) didn't specify what those problems are, South Carolina's Republican governor said the company is dealing with the potential loss of federal tax breaks for electric vehicle buyers and incentives for EV businesses as well as tariff uncertainties from President Donald Trump's administration,' noted the report.
'What we're doing is urging caution -- let things play out because all of these changes are taking place,' Governor Henry McMaster said.
AESC announced the suspension in construction of its plant in Florence on Thursday. 'Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,' the company's statement said.
AESC promised to restart construction, although it didn't say when, and vowed to meet its commitment to hire 1,600 workers and invest US$1.6 billion. The company said it has already invested US$1 billion in the Florence plant.
The battery maker based in Japan also has facilities in China, the United Kingdom, France, Spain and Germany. In the United States, AESC has a plant in Tennessee and is building one in Kentucky. The statement didn't mention any changes with other plants.
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