Daimler AG's Dieter Zetsche announced the company's commitment to buy more than $22 billion in battery cells.
Daimler AG is prepared to put up $22 billion to purchase battery cells over the next dozen years.
Dieter Zetsche, chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, said the commitment is expected to help insure that the batteries are available to move ahead with the development of electric vehicles.
“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,” Zetsche said.
“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.”
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Daimler is investing more than $11.3 billion in the expansion of the Mercedes-Benz Cars electric fleet and another billion euros in the global battery production network within the worldwide production network.
“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,” said Wilko Stark, member of the Divisional Board Mercedes-Benz Cars, Procurement and Supplier Quality.
“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.”
The company purchases the cells on the world market, ensuring the best possible technology and focuses on the core competence of battery assembly. The suppliers tapped for the commitment are already producing battery cells in Asia and Europe and are continuing to expand in Europe and additionally in the U.S., he said.
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In addition, the global battery production network of Mercedes-Benz Cars, which will get a share of the investment, will consist of eight factories on three continents going forward.
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 China, Thailand and the United States.
By 2022, the entire Mercedes portfolio is to be electrified, with various electrified alternatives available in every segment, from the smart to the SUVs.
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In total, there will be well 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 to increase to 15–25% of total unit sales – depending on individual customer preferences and the development of the public infrastructure.