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07-07-2017 | Mobility Concepts | News | Article

Daimler to Strengthen Their Involvement in Electromobility in China

Christiane Köllner

Daimler is paving the way for electric cars in China. Together with BAIC, the Stuttgart-based company intends to invest in the localisation of battery electric vehicles and in battery production.

Daimler and BAIC are collaborating on developing electromobility further in China. In the presence of German Chancellor Dr. Angela Merkel and Chinese President  Xi Jinping, the strategic partners have announced a framework agreement to further strengthen their collaboration as part of the Sino-German joint venture Beijing Benz Automotive Co., Ltd. (BBAC). The two companies committed to making a joint investment of around 655 million euros to produce Mercedes-Benz brand battery electric vehicles at BBAC’s local production site in Beijing.

Production will start by 2020

As part of this strategic framework agreement, Daimler and BAIC Motor intend to prepare the local production of battery electric vehicles at BBAC by 2020, and provide the necessary infrastructure for the local production of battery cells in China, as well as for research and development capacities.

At the beginning of June of this year, both partners signed a framework agreement further strengthening their strategic collaboration by investing in vehicles with alternative drives (new energy vehicles) in China. As part of this framework agreement, Daimler intends to acquire a minority share in Beijing Electric Vehicle Co., Ltd. (BJEV), a subsidiary of the BAIC Group, with the aim of strengthening strategic collaboration with BAIC in the new energy vehicle sector.

Daimler builds battery factory in Beijing

Daimler is taking a further step in implementing its electric strategy with the construction of a battery factory in China, which involves a multimillion joint investment of over 655 million by BAIC and Daimler. The cells for the batteries in the new factory are to be sourced from China. The new factory is a BBAC project.

The battery factory will be part of Mercedes-Benz’s global battery production network, in which Daimler is investing a total of around one billion euros according to its own estimates. The network already includes the site established in 2010 in Kamenz, Saxony, where a second battery factory is currently being built with an investment of around 500 million euros. 

Mercedes-Benz cars on the offensive with electromobility

More than ten new Mercedes-Benz electric models are to be launched worldwide by 2022. Ten billion euros are to be spent on expanding its electric fleet in the next few years. The new electric vehicles will be produced as part of Mercedes-Benz’s manufacturing network, with plants on four continents. By 2025, electric vehicles should account for between 15 and 25 percent of all Mercedes-Benz models sold.

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