BMW to spend 100 million U.S. dollars to build carbon fiber plant

According to Bloomberg, the German BMW Group invested US$100 million in the construction of a carbon fiber plant, which was the first carbon fiber factory built by automakers.

The construction of a carbon fiber plant by BMW Motors will guarantee the supply of this material and reduce its cost. It is reported that carbon fiber material is 20 times more expensive than steel, and BMW needs this material to reduce the weight of its electric vehicle and balance the weight of the battery.

German BMW Motor Co. announced that the company will invest approximately 400 million euros in the expansion of its Leipzig plant to produce the world's first mass-produced electric vehicle with carbon fiber plastic as its body material to be launched in 2013.

The Herbert Quandt recently increased its stake in BMW's important carbon fiber automotive parts partner, SGL, to limit its rival Volkswagen Group's control of the company.

BMW's competitor, Volkswagen Group, acquired 8.18% of SGL, becoming the company's second largest shareholder.