Daimler is purchasing the power it will need for its electrification push. The Stuttgart-based carmaker announced that it had purchased EUR 20 billion worth of battery cells as part of a supply contract extending to 2030.
“Our electric offensive continues to gain momentum,” Daimler CEO Dieter Zetsche said in a statement. “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.”
By 2020, Mercedes plans to have more than 130 models with electric drives (including transporters, buses and trucks), of which 10 will have purely electric drives. It also intends to increase the proportion of fully electric cars to 15 to 25 percent by 2025.
What’s more, as part of an effort to encourage more responsible business sourcing, the company has announced that as early as 2025 it will use battery technology that does not require either lithium or cobalt, which are often mined using methods that violate human rights. To turn battery cells into batteries, the Group is also investing EUR 1 billion into a total of eight battery factories on three continents.
Other German carmakers are also making similar efforts: for example, Volkswagen announced that it would spend EUR 50 billion on battery cells.