Daimler to Buy $23 Billion of Battery Cells for EVs
FRANKFURT—Daimler will buy battery cells worth more than $23 billion by 2030, as it readies mass production of hybrid and electric vehicles, the maker of Mercedes-Benz cars announced on Tuesday. According to Reuters, Daimler is one of a number of German automakers massively expanding in electric vehicles as European regulators clamp down on toxic diesel emissions.
Daimler declined to say which suppliers would be awarded the contracts. However, the company already has battery cell supply deals with Korea’s SK Innovation, LG Chem and China’s Contemporary Amperex Technology, as it plans to launch 130 electric and hybrid vehicles by 2022 in addition to making electric vans, buses and trucks.
Stuttgart-based Daimler needs battery cells as it builds a global network of battery assembly plants in Kamenz, Untertuerkheim and Sindelfingen in Germany, as well as in Beijing, Bangkok, and Tuscaloosa, United States. Daimler also says it is expanding its competence in battery cell research and working on next generation batteries to cut its dependence on costly rare earth minerals including cobalt, which is mainly sourced from war-torn Democratic Republic of Congo.
The Mercedes-Benz EQ electric car, set for a 2019 launch, will use battery cells containing 60 percent nickel, 20 percent manganese and 20 percent cobalt. Future Mercedes-Benz electric cars will contain batteries using 80 percent nickel and only 10 percent manganese and 10 percent cobalt.