**Battery Manufacturer Halts Construction at South Carolina Plant**

Envision Automotive Energy Supply Co. (AESC) has halted construction at its manufacturing facility in Pee Dee, South Carolina, delaying the creation of 1,600 jobs. The announcement came two years after work began on the site near Florence.

The Japanese battery cell manufacturer cited "policy and market uncertainty" as the reason for the pause. "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," spokesperson Brad Grantham said. AESC has already invested over $1 billion into the project and still plans to meet its original commitments of $1.6 billion investment and 1,600 new jobs eventually.

South Carolina Governor Henry McMaster attributed the pause to uncertainties in Washington, D.C., particularly regarding trade policies and fluctuating tariffs under President Donald Trump's administration. McMaster acknowledged the importance of stabilizing international trade policy and expressed optimism about the state's economic future despite current challenges.

The temporary halt in construction also comes against a backdrop of legislative changes that could impact the electric vehicle industry. A massive tax and spending bill passed by the U.S. House proposes eliminating electric vehicle tax credits for both consumers and businesses, adding another layer of uncertainty.

Earlier this year, AESC scaled back its expansion plans, deciding against building a second facility that would have created an additional 1,080 jobs. This change led South Carolina to withdraw its offer of $111 million in state funding for that phase of the project. However, the state remains committed to supporting AESC, with $121 million in bonds and $135 million in grants still in place for the initial phase.

In addition to its plans in Florence, AESC is contracted to supply battery cells to BMW's U.S. manufacturing facilities in the Upstate. Despite the current pause, BMW’s battery assembly operations in Woodruff, expected to commence in 2026, remain on schedule.

As the electric vehicle industry navigates these uncertainties, the pause at AESC's South Carolina plant is another example of the challenges facing the sector.