Florence, S.C. – Electric vehicle battery manufacturer Envision AESC has paused construction on its high-profile manufacturing plant in South Carolina’s Pee Dee region, delaying the company’s promised $1.6 billion investment and the creation of 1,600 new jobs for the state.

The announcement comes just two years after the Japanese-owned firm broke ground on the facility, intended to support growing demand for EV batteries, especially for BMW's U.S. operations.

In a statement issued Thursday, spokesman Brad Grantham said:

“AESC has informed the state of South Carolina and our local partners that due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time.
We anticipate being able to resume construction once circumstances stabilize.”

Grantham added that the company has already invested more than $1 billion into the project and still “fully intends to meet our commitments to invest $1.6 billion and create 1,600 jobs in the coming years,” though no new timeline was provided.

Governor McMaster Urges Patience

Reacting to the news, South Carolina Governor Henry McMaster referenced ongoing uncertainty at the federal level, particularly with regard to trade and EV policy, but advised the public not to panic.

“We hate to see that happen, but a pause is OK,” McMaster told reporters, referencing a similar temporary suspension at Volvo’s Lowcountry facility last week.

The Republican governor, a vocal supporter of former President Donald Trump, also pointed to volatile federal tariffs and legislative proposals affecting the electric vehicle industry.

“The tariffs are going up and down, and some of those are being paused,” he said, adding that pending federal tax and spending legislation could eliminate EV tax credits for consumers and businesses alike.

McMaster continued:

“Let things play out, because all of these changes are taking place.
So, I’d say, relax if you can. … We believe that, give it some time, and it’ll work out.”

Despite federal headwinds, the governor remained optimistic:

“Despite all the ups and downs, [the economy] is still going up, up, up.”

He said he is in active communication with AESC officials, members of South Carolina’s congressional delegation, and the White House.

Delays, Revisions, and Canceled Expansions

The AESC project has seen several changes since it was first announced in 2022. Earlier this year, the company backed out of a planned $1.5 billion second building that would have supported battery cell production for BMW’s Mexico plant, citing that the original factory would be sufficient to meet both U.S. and international demand.

That decision canceled 1,080 planned jobs, prompting South Carolina to withdraw a $111 million incentive package it had offered for the expansion. The move was unusual for the state, which typically leans heavily on economic incentives to attract major employers.

Still, the remaining facility — which remains partially funded by $121 million in state bonds and $135 million in grants — had been positioned to become the largest economic development project in the Pee Dee region, according to the South Carolina Department of Commerce.

Commerce spokeswoman Alex Clark confirmed that the remaining incentives are so far unaffected by the construction pause.

BMW Partnership and Industry Context

Despite AESC’s pause, BMW’s U.S. battery plans remain on track. The German automaker previously contracted AESC to supply cells for its Spartanburg County vehicle plant, and invested $700 million into its own battery assembly facility in Woodruff, where those cells will be used.

BMW spokesman Steve Wilson stated:

“Those battery assembly plans are still on schedule to begin in 2026.”

AESC’s announcement comes amid a broader slowdown in EV sector expansion, driven by softening consumer demand, regulatory uncertainty, and shifting automaker strategies. Many companies are now pivoting from all-electric plans to hybrid vehicle strategies, especially as federal tax incentives face potential repeal under legislation moving through Congress.

Though EV sales are still climbing globally, delays and rollbacks have become more common, both in South Carolina and across the U.S.

Originally reported by Batteries News.