AESC, an electric car battery maker, says it is pausing construction of the company's $1.6 billion facility in Florence County.
In a Thursday statement, AESC cited policy and market uncertainty for the pause. State and local leaders were informed of the decision Thursday.
The Japanese manufacturer's announcement comes as the Trump administration pushes and implements higher tariffs and the budget reconciliation bill in Congress — known as the Big Beautiful Bill — seeks to end electric vehicle tax credits.
“AESC has invested over $1 billion into the Florence facility, and we anticipate being able to resume construction once circumstances stabilize," AESC spokesman Brad Grantham said in a statement sent to media. "AESC fully intends to meet our commitments to invest $1.6 billion and create 1,600 jobs in the coming years.”
The battery cells made at the plant will be used for BMW's high-voltage battery plant in Woodruff. BMW Manufacturing said the company has already invested $700 million into the plant, which is expected to start assembling cars next year.
That money invested by AESC is in addition to the millions of dollars invested by the state and Florence County.
"This is a gut punch. Simple as I know to put it," state Rep. Roger Kirby, a Florence Democrat, told SC Public Radio by phone Thursday. "It's just unimageable really."
Despite the company's promises, Kirby said he's concerned the pause could last longer than a few months. That extension, he said, would likely have an impact on other EV-related companies in South Carolina.
Late last month, production at Volvo's Ridgeville plant temporarily paused. The company said it was due to a supply chain issue.
The impact of a longer delay would also affect the Pee Dee region, Kirby said.
"It's incredibly impactful," from jobs, housing, planned development and potential suppliers to AESC, Kirby said.
Gov. Henry McMaster told reporters Thursday that his office is in contact with the state’s federal delegation and White House.
SC Public Radio has reached out to the offices of U.S. Sens. Lindsey Graham and Tim Scott for comment.
The state Commerce Department said "we are fully and unequivocally committed to supporting existing companies including AESC."
For now, McMaster urged patience.
"There is a lot of uncertainty in the reconciliation bill, whether (those) tax credits will still be in there or incentives. Of course, with the tariffs, the tariffs are going up and down. Some of those are being paused," McMaster said.
"Give it some time, and it will work out," the governor added.
