MOSES LAKE, Wash. -- BMW has substantially cut the cost of carbon fiber production in the three years it has operated a factory here, says Joerg Pohl-man, managing director, SGL Automotive Carbon Fibers.

That puts BMW three to five years ahead of the competition, Pohlman says.

BMW and SGL Group jointly own the carbon fiber production plant they say will be the world's largest by 2015. The partners are spending $200 million, on top of the $100 million already invested, to expand the plant by 2015.

SGL Automotive Carbon Fibers is the sole provider of carbon fiber used in the body of the BMW i3 electric compact and the i8 plug-in hybrid sports car. The additional capacity will enable BMW to use carbon fiber in "large series automotive production," starting with the replacement 7-series flagship sedan due in two years, BMW executives said. BMW also has said it will have a family of i vehicles that will use carbon fiber extensively.