Daimler buys battery cells worth $22 billion for electrification of Mercedes-Benz cars and commercial vehicles

Mercedes-Benz plans to electrify its entire portfolio by 2022 with various electrified alternatives available in every segment

Electric vehicles, Daimler, Mercedes-Benz, Trucks, Batteries, Connected, Autonomous, Electric
Daimler AG

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Daimler has invested in battery cells worth $22 billion to drive the company's CASE corporate strategy, which represents the fields of networking (Connected), autonomous driving (Autonomous), flexible use (Shared & Services) and electric drive systems (Electric).

Mercedes-Benz plans to electrify its entire portfolio by 2022 with various electrified alternatives available in every segment. In total, there will be over 130 variants, from the 48-volt electrical system to EQ Boost and plug-in hybrids and more than ten all-electric vehicles powered by batteries or fuel cells. By 2025, sales of battery-electric vehicles are estimated to increase to 15-25% of the company's total unit sales, depending on individual customer preferences and the development of the public infrastructure.

Daimler is investing over $11 billion in the expansion of the Mercedes-Benz Cars electric fleet and another over $1billion in the global battery production network within the worldwide production network. The company purchases the cells on the world market. This ensures the best possible technology and focuses on the core competence of battery assembly. The global battery production network of Mercedes-Benz Cars will in the future consist of eight factories on three continents. The first factory in Kamenz is already in series production and the second factory there will start series production at the beginning of 2019. Two more factories will be built in Stuttgart-Untertürkheim, one at the company’s Sindelfingen site, and one each at the sites in Beijing (China), Bangkok (Thailand) and Tuscaloosa (USA). The local production of batteries is an important success factor in Mercedes-Benz Cars’ electric offensive and is decisive for meeting the global demand for electric vehicles flexibly and efficiently.

With regard to commercial vehicles, Daimler Trucks, Daimler Buses and Mercedes-Benz Vans are introducing electrical solution for all segments in inner-city traffic. Daimler has been gaining experience with electric trucks since 2010 and has had its first all-electric truck, the Fuso eCanter light-duty truck, in series production on the market since 2017. The all-electric eActros for heavy-duty distribution transport has been under testing on Germany’s roads since June 2018. Series production in the bus segment began in autumn 2018 and the first Mercedes-Benz eCitaro was recently delivered to Hamburg’s public transport operator Hamburger Hochbahn AG. Mercedes-Benz Vans is electrifying its entire commercial fleet. It started with the all-electric mid-size van eVito, which has been delivered since November 2018. The eSprinter will follow in the second half of 2019. Mercedes-Benz Vans is workign with Hermes and Amazon Logistics in Germany on two pilot projects involving 1,500 Mercedes-Benz electric transporters and the corresponding charging infrastructure for Hermes Germany and 100 eVito vans for Amazon Logistics.  

Dr. Dieter Zetsche, chairman of the board of management, Daimler AG, and head of Mercedes-Benz Cars, said: “Our electric offensive continues to gain momentum. After investing billions of euros in the development of the electric fleet and the expansion of our global battery network, we are now taking the next step: With the purchase of battery cells for more than 20 billion euros, we are systematically pushing forward with the transformation into the electric future of our company. We plan a total of 130 electrified variants at Mercedes-Benz Cars by 2022. In addition, we will have electric vans, buses and trucks.”

Wilko Stark, member of the divisional board, Mercedes-Benz Cars, procurement and supplier quality, said: “With extensive orders for battery cells until the year 2030, we set another important milestone for the electrification of our future electric vehicles of the EQ product and technology brand. In this way, together with our partners, we ensure the supply of our global battery production network today and in the future using the latest technologies."

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