Japanese battery manufacturer Automotive Energy Supply Corp. (AESC) has halted construction on its $1.6 billion plant in Florence, South Carolina, citing “policy and market uncertainty” as the reason for the pause
“Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,” the company said in a statement released Thursday. AESC did not provide details, but South Carolina Gov. Henry McMaster pointed to concerns over potential changes to federal tax incentives for electric vehicle (EV) buyers and EV manufacturers, as well as tariff-related questions under former President Donald Trump’s re-election platform.
“What we’re doing is urging caution — let things play out because all of these changes are taking place,” McMaster said.
The Florence plant is part of a supply chain intended to serve BMW, which is building a battery assembly facility near its existing vehicle plant in Greer, South Carolina. BMW said its plans remain unchanged and that its battery assembly site is still on track to open in 2026.
AESC said it remains committed to the South Carolina project and reiterated its plan to invest $1.6 billion and eventually hire 1,600 workers, though no new timeline for construction was provided. The company says it has already spent $1 billion on the Florence facility.
Earlier this year, AESC scaled back its South Carolina ambitions, canceling plans for a second factory on the site after determining the original plant would meet BMW’s needs. That change led state officials to withdraw $111 million in incentives previously pledged to support the project.
AESC, which also operates in China, the United Kingdom, France, Spain and Germany, has two other U.S. facilities — an operational plant in Tennessee and a new site under development in Kentucky. The company did not indicate any changes to those operations.