Envision Automotive Energy Supply Co. (AESC) has announced a temporary pause in construction at its battery manufacturing facility near Florence, South Carolina, citing policy and market uncertainty. The Japanese-owned company began work on the plant—intended to produce cells for electric vehicles—two years ago and has already invested more than $1 billion. AESC reaffirmed its commitment to invest a total of $1.6 billion and create 1,600 jobs in the coming years, though it did not specify a revised timeline for completion.
Brad Grantham, an AESC spokesman, stated that the company notified state and local partners of the decision and plans to resume construction once external conditions stabilize. The announcement follows a scaling back of the project earlier this year, when AESC withdrew plans for a second production building—originally backed by $111 million in state incentives—and the associated 1,080 jobs, determining that a single factory would meet anticipated demand.
Governor Henry McMaster attributed the construction pause in part to fluctuating federal trade and tax policies. “We hate to see that happen, but a pause is OK,” he said, noting recent tariff adjustments and the uncertain fate of proposed federal legislation that could eliminate electric vehicle tax credits for new and used vehicles, as well as home and business charging installations. McMaster expressed confidence in South Carolina’s economic resilience and said he is in contact with the state’s congressional delegation, company officials, and the White House.
AESC’s facility had been positioned to supply BMW’s U.S. assembly operations; the automaker has invested $700 million in its nearby battery assembly plant in Woodruff and expects cell production to support its U.S. facilities beginning in 2026. Despite earlier setbacks and broader industry delays in scaling EV supply chains, electric vehicle sales continue to grow nationally and globally, while automakers increasingly balance all-electric and plug-in hybrid strategies.
South Carolina’s Department of Commerce maintains that the remaining $121 million in bonds and $135 million in grants offered to AESC remain in place and that the state remains committed to supporting its existing industrial partners.
Source: South Carolina Daily Gazette
