Mercedes-Benz to build eight battery factories in push to become electric-only automaker by 2030
Mercedes-Benz laid out Thursday a €40 billion ($47 billion) plan to become an electric-only automaker by the end of the decade, a target that will push the company to become more vertically integrated, train its workforce and secure the batteries needed to power its products.
Mercedes has provided some wiggle room in that ambitious goal, noting that it will be “ready to go all electric by the end of the decade, where markets allow.” This could mean that some combustion engine Mercedes, which are already equipped with 48-volt mild hybrid systems, will be produced and sold beyond the decade.
“We have a very clear plan to rapidly scale BEVs; we want to get on this journey to a BEV (battery electric) only world,” Daimler AG and Mercedes-Benz AG CEO Ola Källenius said during a media call after the announcement. “We want to be the people that make that happen, not just let it happen for us and go with the flow, but really taking initiative. And we believe also that the luxury segment, where we belong, has all the hallmarks of being a leading segment for this transition.”
The company has already taken some action, announcing Thursday it acquired U.K.-based electric motor company YASA, and has determined it will need battery capacity of more than 200 gigawatt hours. To hit meet those needs, Mercedes plans to set up eight battery factories with existing partners and one new partner to produce cells.
