News

Mercedes-Benz Invests $740M in EV Battery Factory

Order Reprints

July 6, 2017—Daimler announced it would be working with its Chinese partner, BAIC Motor, to construct a $740 million battery factory in China tobuild EV batteries and Mercedes-Benz battery-electric vehicles, according to Road Show.

"By 2025, the Chinese market will have a substantial share in sales of Mercedes-Benz electric vehicles," said Hubertus Troska, a Daimler AG board member, in a statement. "Therefore, local production will be key to the success of our EV portfolio, and crucial to flexibly serving local demand for electric vehicles."

Daimler is set to dump around $1.13 billion into battery production around the world. The automaker already has a battery plant in Kamenz, Germany, which is set to receive a second battery factory on the premises. Between these two locations, Daimler should be able to furnish the batteries required for its first batch of electric Mercedes-Benz vehicles.

While the company already produces some plug-in hybrids and battery-electric vehicles, the automaker plans to launch 10 new electric passenger vehicles by 2022. Mercedes-Benz hopes that EVs will comprise between 15 and 25 percent of its total vehicle sales by 2025.

 

Related Articles

Mercedes-Benz to Offer Electric Option for Every Car by 2022

Battery Shortage Could Harm German OEMs' EV Plans

Toyota Chairman Skeptical of Widespread EV Adoption in Near Future

You must login or register in order to post a comment.