24 February 2025

BMW's MINI Plant Uncertainty Amid Europe's EV Challenges

BMW’s recent announcement has cast doubt on the future of its MINI manufacturing plant in Oxford, UK. Located a stone’s throw away from SFA’s office, the plant has long been a key fixture in the city’s automotive history. However, as Europe pushes for greater EV production, the plant’s future is uncertain due to ambitious policies that lack sufficient support for both manufacturers and consumers.

The challenge for European manufacturers lies in competing with China’s efficient, localised supply chains. Chinese facilities have a competitive edge in terms of scale and affordability, making it difficult for Europe to keep up, especially in battery production.

BMW’s decision could have been influenced by the collapse of Northvolt, which had aimed to strengthen Europe’s battery manufacturing. With fewer local sources for battery cells, it might make more sense for BMW to continue, if not expand, their Chinese manufacturing operations where they continue to benefit from the aforementioned synergies. 

This news, once again, re-enforces the ongoing challenges facing the European automotive industry in achieving its EV goals. Without addressing key issues like reliable supply chains and battery production, it is not unlikely that Europe’s ambitions may fall short of the 2035 targets.

SFA (Oxford) has assessed the European EV downside risk on the critical battery commodities in the latest publication of the Battery Metals Quarterly Report for Q1.

Get in touch today for a complimentary presentation on our latest views and how SFA can augment your strategic decision-making.

The MINI manufacturing plant in Oxford.