Germany: Daimler to increase local production of car batteries image

Over the coming years Daimler, the parent company of Mercedes-Benz, the third largest luxury automaker in the world, is going to invest around 100 million euros ($125 million) to lift the local output of car lithium ion battery packs.

The company’s Deutsche ACCUmotive, the automaker’s battery-building unit in Saxony will cater for the increased production plans, according to a Daimler statement, as the German carmaker forecasts “high and steadily-growing demand” for electric-car batteries. The division is in charge of producing the battery packs for the carmaker’s Mercedes-Benz hybrid S-, E- and C-class models, Daimler further said. The announced plans to increase the battery capacity output at the Deutsche ACCUmotive unit fall in line with the announcement Daimler made last month. The company said then it would gradually stop production of lithium ion battery cells at its second Saxony-based Li-Tec unit before the end of next year. Most of the workers it has at the latter division – around 250 people – would be transferred to Deutsche ACCUmotive.

The automaker – which has partnered even with US electric automaker Tesla Motors for the batteries and electric powertrain of the battery-operated version of the B-Class compact – also plans to source cheaper battery cells for its 2016 electric Smart model from South Korea’s LG Chem.

Via Automotive News Europe