Daimler Purchases $20 Billion Worth of Battery Cells for EV Plans

by David Mowatt

In order to take the next step towards the development of their electric fleet, German automaker Daimler has announced that they will be purchasing over $20 billion worth of battery cell supply contracts to support their future electric vehicle plans. 

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, made the announcement, stating:

“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.”

The 130 electrified variants Zetsche alluded to include hybrids, plug-in hybrids, and fully-electric vehicles.

According to their most recent press release, Daimler intend to invest ten billion euros 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. While Daimler has yet to specify which suppliers will be receiving the $20 billion contracts, the German automaker confirmed that the suppliers are already hard at work producing the battery cells in Asia and Europe with plans to expand to the U.S.

Wilko Stark, Member of the Divisional Board Mercedes-Benz Cars, Procurement and Supplier Quality, added:

“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.”

Daimler has certainly been on a roll lately, as this announcement brings them one step closer to securing their CASE corporate strategy. The four CASE fields—networking (Connected), autonomous driving (Autonomous), flexible use (Shared & Services), and electric drive systems (Electric)—are the integral parts of Daimler’s electrification strategy.

With the purchase of these battery cell supply contracts, coupled with the recent construction of brand new battery factories across the globe, as well as their investments in commercial bus and truck transportation, Daimler is truly shaping up to be an electric force to be reckoned with.

Source: Daimler

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