Mercedes Benz Acquires Stake in Battery Cell Manufacturer Farasis

Jul 3, 2020 04:43 PM ET
  • Mercedes-Benz has developed a calculated collaboration with the Chinese battery cell supplier Farasis and also is also taking an equity risk in the company.
Mercedes Benz Acquires Stake in Battery Cell Manufacturer Farasis

Mercedes-Benz has actually revealed it is taking an additional crucial step on its journey towards CO2-neutral mobility. The Stuttgart-based deluxe car maker has released a far-reaching strategic collaboration with the Chinese battery cell manufacturer Farasis Energy (Ganzhou), including taking an equity stake in the business. This relocation represents another crucial turning point in the direction of Mercedes-Benz's "Ambition2039" CO2-neutral objective.

Crucial element of the arrangement consist of the growth and also industrialisation of extremely advanced cell modern technologies, accompanied by ambitious goals for cost competition. The technological focus gets on considerable rises in range through advancements in power thickness and the reduction of charging times.

The agreement will supply a secure source of supply of battery cells for Mercedes-Benz's electrification strategy, while Farasis gains protection for its planned building and construction of production capacity. In order to have the ability to fulfill the increasing need for German Mercedes-Benz plants in the future, Farasis is constructing a plant for battery cells in Bitterfeld-Wolfen; producing up to 2,000 brand-new tasks. The East German website is designed as a CO2-neutral factory from the beginning.

" We are really pleased to additional increase our partnership with Farasis in taking a definitive action within the implementation of our electrical strategy 'Electric first'. By tactically expanding our business partnership, we are pressing the electrification of our model profile ahead," claimed Markus Schäfer, Member of the Board of Management of Daimler AG as well as Mercedes-Benz AG.

" With this agreement, we contribute our expertise in the field of battery cell development. At the same time, we are giving an increase for Farasis's brand-new plant and also promoting the sustainable advancement of vital innovation and also its establishment in Germany. We show our companion the usual vision of a more lasting globe with CO2-neutral wheelchair."

With this calculated collaboration, Mercedes-Benz is deepening its sustainability activities as well as additional strengthening its existing organisation relationship with the battery cell distributor by taking a risk of around 3 percent. To this end, Daimler Greater China is spending a multi-million euro amount as part of Farasis' IPO. It will certainly offer Daimler the option to choose a representative for a seat on the supervisory board of the battery cell manufacturer. Markus Schäfer would certainly plan to take the seat after a period of 12 months subject to regulatory authorization of the ballot procedure.

As part of the "Electric first" approach, Mercedes-Benz is applying the electrification of all model variants and vehicle types. In less than 20 years, the company's brand-new vehicle fleet will certainly be CO2-neutral, as well as by 2030 the company intends to guarantee that more than 50 percent of its passenger car sales are plug-in crossbreeds or all-electric vehicles.

Totally electrical Mercedes-Benz trucks, vans and buses are already in collection manufacturing. By the end of this year, the companies' goal is to have five fully electric auto versions as well as 20 plug-in crossbreed versions on the market.

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