Dive Brief:
- Auto supplier BorgWarner will pour $62 million into two of its U.S. manufacturing operations to support the industry’s shift to EVs, according to announcements from April.
- The company will spend $42 million on building and equipment upgrades, plus the addition of new manufacturing lines for battery module and pack production at its Seneca, South Carolina, facility.
- A $20 million investment is also planned in Michigan, where BorgWarner is based. The money will go toward a new EV battery service center and expanding three facilities for faster development and production of EV products including charging infrastructure.
Dive Insight:
BorgWarner has worked to bolster its EV portfolio in recent years as the automotive industry increasingly shifts to electrification. The company grew its product offerings with the acquisition of German-based Akasol in 2021 and electric powertrain manufacturer Delphi Technologies in 2020.
Now, the major auto parts supplier is growing its manufacturing capabilities to meet rising demand for its EV components. BorgWarner expects sales from its EV business to grow at least 72% YoY in 2023, according to a Q1 earnings report.
Its recent investments in its South Carolina and Michigan facilities bring the added benefit of upping part production capacity near where its major OEM customers are building out EV operations, including BMW and General Motors.
The Michigan investment will be split across three facilities. In Auburn Hills, funding will be allocated to new electrification labs and allow for research and development; Dearborn will add roughly 7,000 square feet for manufacturing, engineering and service departments for DC fast charging equipment; and, BorgWarner’s Hazel Park location will gain a 100,000-square-foot battery service center.
Meanwhile, the South Carolina expansion will add yearly battery module production capacity up to 3GWh. The expansion is slated begin in Q2 2023 and be completed in early 2024.
