Daimler has signed a deal to buy lithium ion battery cells from Farasis Energy, a Chinese-American supplier.
Farasis Energy is building a factory in east Germany to help Mercedes-Benz ramp up electric vehicle production. Farasis is constructing the plant in Bitterfeld-Wolfen in Germany’s Saxony-Anhalt region.
Markus Schaefer, Daimler’s board member responsible for research and Mercedes-Benz Cars development, said at the Frankfurt car show, said: “It will be a multiple gigawatt facility and it will supply cells for our battery plants in Kamenz, Bruehl and Sindelfingen.”
Farasis said it is investing 600 million euros or $662.5 million to build the German plant.
Daimler will use lithium ion battery cells made up of nickel, manganese and cobalt (NMC) for now, as other battery composition materials which promise higher energy density have not proved as reliable.
Mercedes-Benz is building battery plants in China, the United States and Germany as part of a push to electrify the German luxury brand.