News Summary
AESC, a Japanese battery cell manufacturer, has declared a temporary halt in building its $1.6 billion battery plant in Florence, South Carolina. This decision follows two years of preliminary work and comes amid concerns over policy and market uncertainties. The construction was expected to create around 1,600 jobs, and state officials are voicing apprehensions about the implications of federal policy changes. AESC remains committed to its investment and job creation plans, though it aims to resume construction once conditions improve.
South Carolina – AESC, a Japanese-based company known for manufacturing battery cells, has announced a pause in the construction of its significant $1.6 billion battery plant in Florence, South Carolina. This decision, announced on June 5, 2025, comes after two years of preliminary work following the groundbreaking ceremony held on June 7, 2023.
The construction halt impacts the facility that was projected to generate approximately 1,600 jobs upon completion. AESC has already committed and invested over $1 billion into the project, but has cited “policy and market uncertainty” as the reason for the temporary suspension. The company has indicated that it plans to resume construction once market conditions stabilize.
AESC is determined to fulfill its long-term commitments, including its planned total investment of $1.6 billion and the establishment of 1,600 jobs in the upcoming years. Local and state officials, including South Carolina Governor Henry McMaster, have expressed concerns about uncertainties stemming from federal policies in Washington, D.C. affecting the construction timeline for the facility.
Further complicating matters, a proposal from the U.S. House aims to eliminate electric vehicle tax credits that currently benefit the electric vehicle industry, adding to the uncertainty faced by companies like AESC. Governor McMaster noted that fluctuations in tariffs and tax policies are contributing factors to the decision to pause construction and emphasized the importance of remaining calm and informed as the situation evolves.
This announcement follows AESC’s previous decision to halt an expansion plan for a second facility, which would have involved an additional investment of $1.5 billion and the creation of 1,080 jobs. AESC has strong ties with BMW, which has contracted the company to produce battery cells for its U.S. manufacturing facilities. BMW has already invested $700 million into its own battery assembly plant located in Woodruff, South Carolina, which is scheduled to begin operations in 2026.
AESC aimed to supply batteries for both BMW’s Spartanburg plant and a planned facility in Mexico that is also going into development. The delay in construction is anticipated to have significant implications for local economic development in the Pee Dee region. However, officials remain hopeful for a resolution that would ensure the project’s future viability.
In response to the recent construction delay, the South Carolina Department of Commerce has reiterated its commitment to supporting AESC and the broader development project. The state has allocated over $255 million in incentives to bolster the project, which includes $135 million designated for local project costs and $120 million for necessary off-site infrastructural upgrades.
As the future of AESC’s Florence plant and its associated economic impacts hang in the balance, both local authorities and company representatives will be closely monitoring the evolving market and policy landscape. With continued support from state officials and a commitment from AESC to its planned investments, there is a cautious optimism for the potential of the project to resume and ultimately contribute to the region’s economic revival.
Deeper Dive: News & Info About This Topic
- SC Daily Gazette
- Wikipedia: Electric Vehicle
- WPDE
- Google Search: AESC Florence plant
- Post and Courier
- Encyclopedia Britannica: Battery
- Wall Street Journal
- Google News: South Carolina battery plant
Author: STAFF HERE MYRTLE BEACH
The HERE Myrtle Beach Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Myrtle Beach community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Myrtle Beach Our team includes lifelong Myrtle Beach residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent developments along the Grand Strand, Myrtle Beach’s tourism and hospitality industry, and growth in local education sectors (e.g., Coastal Carolina University programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Myrtle Beach Area Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
