Mercedes-Benz Invests $740M in EV Battery Factory
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.