Daimler secures battery cells for 20 billion euros

The automotive industry has to dig deep in its pockets to produce electric vehicles. Development costs for vehicles, conversion of factories, investments in digitization, autonomous driving and new mobility concepts must be financially controlled. However, the 'fuel' of electric cars - battery cells, also devour billions.

To enable Daimler to secure the necessary cells for its own battery production in the long term, the German carmaker has signed long-term contracts with various cell manufacturers. Through these contracts, Daimler will secure the supply of battery cells until 2030 and will pay over 20 billion euros in return. Daimler is said to have received contractual assurances from its partners that it will always receive the latest cell technology.

Daimler did not name the suppliers with whom they signed. The only note: they produce batteries in Asia, Europe and in the future in the USA. These cells are then assembled in eight Daimler-owned battery plants for the corresponding vehicles. Five plants will be built in Germany, two each in Kamenz, Saxony, and in Stuttgart-Untertürkheim - a battery factory in Sindelfingen. The other three plants will then be located close to local production facilities in Beijing, Bangkok and Tuscaloosa. In total, these battery plants will cost Daimler another billion.

Daimler has earmarked a further 10 billion euros for the development and production of Mercedes Benz electric cars. By 2025, electric cars should account for between 15 and 25 percent of total sales.

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Source: Daimler AG