German automaker BMW has committed to building Neue Klasse electric vehicles at its San Luis Potosi plant in Mexico, with an investment of €800 million (approx. $860 million).

The first of the Neue Klasse EVs will arrive in 2025 and will be built at the company's facility in Debrecen, Hungary. Two years later, BMW's cutting-edge lineup of electric vehicles will roll off the production line in Mexico. The substantial investment will create 1,000 jobs and contribute to BMW's EV goals.

Previously, the carmaker has said it hopes 50% of its sales come from electric vehicles by 2030. With this new investment, BMW hopes to reach this goal at an earlier date. This announcement follows a $1.7 billion investment into the Spartanburg facility, which builds several BMW vehicles including the new XM, X5, and X7 SUVs.

Furthermore, BMW will invest an additional €800 million into its Mexican operations. More than half of the investment will go toward the construction of an assembly plant for high-voltage batteries. This facility will be situated on San Luis Potosi grounds. These batteries will be used in future electric vehicles, with more than 500 extra employees working in the facility.

"With this new investment, our plant in San Luis Potosi will play a central role in BMW Group's transition to electromobility," said BMW's Harald Gottsche. "The company is increasing its commitment to Mexico and its stake in our facility, not only due to its strategic location but, above all, to a solid work team, which, in less than four years after starting operations, already produces three models that supply 74 global markets and stand out for their quality."

The automaker's Mexican facility currently builds the 2 Series Coupe, the 3 Series and, recently, began production of the M2 - the first M car ever to be produced at the factory. Currently, high-end electric vehicles like the iX and i7 are manufactured at BMW's Dingolfing plant in Germany.

San Luis Potosi will be expanded to accommodate the Neue Klasse vehicles. A unique trait of these upcoming electric vehicles is that the battery is integrated into the structure. BMW has said it will realign the factory to integrate this production process.

Future BMW electric vehicles, namely the Neue Klasse lineup, will utilize sixth-generation lithium-ion cell batteries that promise an improvement in charging speed and range of 30% and an increase in energy density by more than 20%. More importantly, they're 50% cheaper to produce than before.