Daimler, with Stellantis and TotalEnergies, plans to collaborate on a European battery project that will cost over € 7 billion ($ 8.2 billion) to secure supplies for auto Mercedes-Benz electric cars in their home region.
The largest manufacturer of auto world’s luxury company will acquire a 33% stake in battery maker Automotive Cells Company, which will be funded through equity, debt and subsidies to build at least 120 gigawatt-hours of capacity in Europe, by the end of the decade. ACC has also had previous talks with French rival Renault Stellantis about the partnership.
Mercedes will invest nearly 500 million euros next year and expects its total spending to remain below 1 billion euros.
“This investment represents a strategic milestone on our path to CO2 neutrality,” said Daimler CEO Ola Kallenius on Friday. “This new partnership allows us to secure supply, benefit from economies of scale and provide our customers with superior battery technology,” according to a release. As reported by “Bloomberg”.
The deal marks the latest step for Mercedes-Benz, the maker of the EQS sedan, in accelerating the adoption of all-electric vehicles, with wealthy buyers expected to be in at the forefront of change. Daimler’s move arrives in amid a flurry of activities and agreements in across the industry to ensure adequate supply of batteries as demand grows. In Europe, electric vehicles accounted for 17% of sales in the first half.
ACC is an initiative developed last year by the Total Saft and Stellantis unit, which includes the Peugeot, Citroen and Opel brands, as well as Fiat and Chrysler.
ACC currently operates a development center in Bordeaux and a pilot site in Nersac, in France, which will start production at the end of quest’year. Both Renault and Nissan Motor have sold their shares in Daimler at the beginning of questyear to help finance the cleanup effort.
Daimler will retain two of six seats on the battery maker’s supervisory board, which it will supply Mercedes for mid-decade and is considering expanding its manufacturing network. in Europe. The two companies will work together to develop battery technology, including high-silicon anode and solid-state batteries.
Mercedes revealed in July that it plans to spend more than 40 billion euros in this decade to revitalize its training and defend its leadership in the segment of auto luxury. The goal includes the production of auto battery-powered on three fully electric vehicle platforms starting in 2025 and the creation of eight battery plants in all over the world with partners.
After being considered for years in delay in the race at auto electric, questThe automaker accelerated its pace with the launch of the EQS, the electric version of the S-Class. The sedan combines luxury charm and a competitive battery pack to challenge Tesla’s leading company.
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