Mercedes-Benz announced today that it will acquire a stake in Chinese battery cell manufacturer Farasis Energy as it tries to secure battery supply for its electric vehicle plans.
Farasis has two production plants in China, in Ganzhou and Zhenjiang, and it is working to expand production in Europe and the US.
Today, they are both selling parts of the company to Mercedes-Benz for an undisclosed amount and starting a strategic partnership with them:
The technological focus is on significant increases in range through advances in energy density and the reduction of charging times. The contract will provide a secure source of supply of battery cells for Mercedes-Benz’s electrification strategy, while Farasis gains security for its planned construction of production capacity. In order to be able to meet increasing demand for German Mercedes-Benz plants in the future, Farasis is building a plant for battery cells in Bitterfeld-Wolfen; creating up to 2,000 new jobs. The East German site is designed as a CO2-neutral factory from the start.
Markus Schäfer, member of the board of management of Daimler AG and Mercedes-Benz AG responsible for Daimler Group Research and Mercedes-Benz Cars COO, commented on the announcement:
We are very pleased to further expand our partnership with Farasis in taking a decisive step within the implementation of our electric strategy ‘Electric first.’ By strategically expanding our business relationship, we are pushing the electrification of our model portfolio ahead. With this agreement, we contribute our expertise in the field of battery cell development. At the same time, we are providing a boost for Farasis’ new plant and promoting the sustainable development of a key technology and its establishment in Germany. We share with our partner the common vision of a more sustainable world through CO2-neutral mobility.
Mercedes-Benz’s electrification effort is just starting to accelerate.
The automaker has had the Mercedes-Benz EQC electric SUV on the market since last year, but it has expanded to the EQV, an electric van, and several other all-electric vehicles are expected to hit the market soon like the EQS, an all-electric sedan.
Now the German automaker is going to have Farasis as a “fixed cornerstone” of its existing battery cell suppliers, and it will be a partner for “the next generations of the Mercedes-Benz EQ products at an early stage.”
FTC: We use income earning auto affiliate links. More.