Shock Pause: South Carolina’s Largest Battery Plant Stalls—What It Means for 2025 Jobs, Electric Cars, and Local Economy
An unexpected work stoppage at AESC’s Florence battery facility halts job creation, raises questions for EV future, and shakes up the local economy.
- $1.6B total planned investment in Florence battery cell facility
- 1,600 promised new jobs now delayed
- $1B+ already invested before pause
- Scheduled BMW battery assembly start: 2026
South Carolina’s hopes for a futuristic economic boom just hit an unexpected speed bump.
Envision Automotive Energy Supply Co. (AESC), the Japanese battery cell manufacturer, has slammed the brakes on construction of its $1.6 billion plant in the Pee Dee. This surprise move stalls plans to deliver 1,600 new jobs to Florence and ripples across an industry already bracing for instability in 2025.
After two years of big promises and major investments, AESC now waits for “policy and market uncertainty” to ease before picking up the tools again. More than $1 billion has already poured into the nearly-complete facility.
Why Did AESC Pause Construction in South Carolina?
Trade tensions and shifting legislation loom large. Recent tariffs introduced by the Trump Administration are driving up import costs. Meanwhile, a Republican-led tax bill in Congress could wipe out critical electric vehicle (EV) tax credits—affecting not only new car buyers but also anyone planning to install EV charging stations.
Governor Henry McMaster urges calm but acknowledges the challenges. With policy in flux, the company is taking a wait-and-see approach, hoping markets and lawmakers will stabilize the landscape soon.
Read the latest on EV policy and global auto trends at Reuters or BBC.
What Happens to the Promised Jobs and Local Economy?
The 1,600 jobs that AESC pledged to bring to South Carolina are now on hold, casting a shadow over local communities that have geared up for an economic boom. The Florence plant remains partially built, its halls quiet for now. State officials are anxious but hopeful, with remaining incentives—including $121 million in bonds and $135 million in grants—still on the table for when construction resumes.
However, the state’s rare move to claw back $111 million in funding for a now-canceled second plant highlights how uncertain this growth remains.
Catch more on job outlooks at US News and economic updates at CNN.
How Will the EV Industry Be Affected?
AESC’s pause reflects a wider trend in the electric vehicle industry. EV sales continue to climb, but the rate is missing early, sky-high projections. Battery makers nationwide, and especially in the Southeast, are feeling the pinch—either delaying or downsizing projects as uncertainty mounts.
Automakers like BMW, AESC’s key client, remain committed to EV expansion. BMW’s own $700 million battery facility in Woodruff is still on track for a 2026 launch. But a rollback of consumer tax incentives could throttle wider adoption, especially in price-conscious markets.
Q&A: What’s Next for the Pee Dee Region’s Biggest Investment?
Q: Will the AESC plant eventually open and hire?
AESC insists it “fully intends” to finish the project and create jobs once market conditions improve. The timeline, however, remains murky as 2025 approaches.
Q: Are state incentives safe?
Funding for the initial phase is secure for now. But further incentives are off the table until construction resumes.
Q: Will this affect BMW’s EV plans?
BMW remains confident its local assembly will start as scheduled, although it will rely on AESC supplying necessary battery cells.
How Can South Carolina Recover—and Get Ahead?
While the pause is a blow, state leaders are determined to keep momentum alive. They are doubling down on support for advanced manufacturing and renewable energy, hoping federal policy will soon provide a clearer path forward.
Stay ahead: South Carolina’s EV future hangs in the balance. Follow key developments, connect with lawmakers, and support local tech initiatives for a shot at economic renewal.
2025 Action Checklist: Don’t Miss the EV Revolution
- Monitor updates from South Carolina Department of Commerce
- Watch for Congressional decisions on EV tax credits and tariffs
- Explore job training and manufacturing programs in clean energy
- Stay informed through reputable business news sources
Want to see South Carolina lead the EV future? Stay tuned and stay vocal—the next chapter could restart sooner than you think.