The second phase of BMW Brilliance Automotive Ltd’s High Voltage Battery Center at Tiexi Powertrain Plant in Shenyang, Liaoning province, started construction on May 28.

The expansion of the center is estimated to take around 10 months, and it is expected to start operating in 2020.

Fifth-generation batteries will be produced in the center that will be used for the new fully-electric iX3 SUV, BMW’s first electric vehicle, which will go into production at their nearby plant in Dadong at around the same time.

A total of 670 million yuan ($104.58 million) has been invested in the second phase.

As well as battery production, research and development, quality control, laboratory work, procurement and supply chain management functions will be brought together at the center.

It is expected that the Shenyang center will become BMW’s first power battery center worldwide to produce that kind of battery. It will play an important role in increasing the status of the Shenyang production base and the importance of the China market in BMW’s global operations.

“BMW’s development strategy in China echoes China's Made in China 2025 strategy and Industrial 4.0 strategy. Shenyang attaches great importance to supporting BMW Brilliance’s development in the city”, said Liu Xiaodong, vice mayor of Shenyang, at the groundbreaking ceremony held on May 28.

BMW Brilliance Automotive Ltd, a joint venture of BMW Group and Brilliance China Automotive Holdings Ltd, was established in Shenyang in 2003.