$1.6B EV battery cell plant in Florence pauses construction over market uncertainty

An electric vehicle battery plant being built in Florence is pausing construction because of uncertainty in the market.

Japanese battery maker Envision Automotive Energy Supply Co . told South Carolina officials it is putting construction work on hold at a site that is supposed to employ about 1,600 people as it makes electric vehicle battery cells for BMW.

Speculation over where President Donald Trump will settle on tariffs and a House budget, and tax bill pushed by the president that would eliminate the $7,500 new electric vehicle tax credit , has led to uncertainty in the market.

"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," Brad Grantham, AESC spokesperson said in a statement. "AESC has invested over $1 billion into the Florence facility, and we anticipate being able to resume construction once circumstances stabilize. AESC fully intends to meet our commitments to invest $1.6 billion and create 1,600 jobs in the coming years."

Gov. Henry McMaster acknowledged the changes in tariffs and tax policy that are still being worked out and encouraged people to relax if they can.

"What we're doing is we just urging caution, and let things play out, because all of these changes are taking place," McMaster told reporters Thursday.

AESC plans to make battery cells for BMW's Spartanburg plant , which is slated to include assembling six fully electric vehicles by 2030.

The Volvo plant in Berkeley County temporarily suspended work last week because of a supply chain issue the company attributed to Trump's administration. However, production has since resumed.