BMW invests €2 billion in German production for new Series 3 and i3

BMW Group has launched series production of sixth-generation high-voltage batteries at its new €1 billion facility in Irlbach-Straßkirchen, Germany. The plant, which utilizes AI and approximately 500 robots, is designed to support the Neue Klasse electric vehicle lineup, specifically supplying the new all-electric BMW i3 produced in Munich.

To facilitate the eighth generation of the Series 3, BMW is investing a total of approximately €2 billion in Germany. This includes €1 billion for the battery plant and €1 billion to adapt the Munich and Dingolfing facilities. Under this new industrial strategy, Munich will focus on the fully electric i3, while Dingolfing will produce internal combustion and plug-in hybrid versions of the Series 3.

The battery production utilizes a “cell-to-pack” architecture and relies on cylindrical cells supplied by CATL and EVE Energy. The Irlbach-Straßkirchen site is expected to employ around 1,600 people at full capacity. This expansion follows a “local for local” strategy, with similar battery assembly plants planned for Hungary, China, Mexico, and the United States.

In a separate strategic context, BMW CEO Milan Nedeljković has expressed concerns regarding aggressive pricing from Chinese electric vehicle manufacturers in Europe, warning of potential market distortions while cautioning against trade wars that could disrupt the battery supply chain.