German automaker company Daimler said that it is issuing over $20 billion worth of battery cell supply contracts for its future electric vehicles. Obtaining battery cell supplies is one of the biggest first steps to achieve high volumes of electric vehicle production.
“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 consistently pushing forward with the transformation into the electric future of our company,” said Dr. Dieter Zetsche — who is the chairman of the board of management of Daimler AG and the head of Mercedes-Benz Cars. “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 vehicles will range from hybrid, plugin hybrids, and all-electric vehicles. The all electric vehicles will require substantially more battery cells than the other types. And Mercedes-Benz is going to start manufacturing the Mercedes-Benz EQC electric SUV next year.
According to Electrek, Daimler announced that it doubled its workforce for battery pack production last month as it prepares for the Mercedes-Benz EQC. And the company is using third-party battery cells for building the battery packs. It is unknown which suppliers are receiving these contracts. However, the suppliers are already producing the battery cells in Europe, Asia, and the USA.
“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,” added Wilko Stark, a member of the divisional board of Mercedes-Benz Cars in the procurement and supplier quality division. “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.”
Mercedes-Benz is also investing a substantial amount to turn six factories to electric vehicle production facilities. These facilities will support the production of Daimler’s lineup of electric vehicles.