Daimler builds battery factory in Beijing

The new factory is a project of Beijing Benz Automotive Co., Ltd. (BBAC), the Sino-German production joint venture between Daimler and BAIC Motor. “Building another premium eBattery factory is the next step in the implementation of our electric strategy. Thus, we have the first foreign location in our global battery production network. The local production of batteries is crucial in order to meet the demand for electric vehicles flexibly and efficiently,” says Markus Schäfer, Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain, in a press release. Daimler and BAIC intend to jointly invest a total of RMB five billion (about EUR 655 million) in the production of Battery Electric Vehicles (BEVs) under the Mercedes-Benz brand and in battery localization at the site. This includes a three-digit million investment (Euro) for the battery production by the joint venture. Local production of battery-powered vehicles is scheduled to start by 2020, the company states in the release. “We are investing in the world’s largest market for Battery Electric Vehicles,” says Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China. “By 2025, the Chinese market will have a substantial share in sales of Mercedes-Benz electric vehicles. Therefore, local production will be key to the success of our EV portfolio, and crucial to flexibly serving local demand for electric vehicles.” The battery factory will be part of the global battery production network of Mercedes-Benz Cars, in which Daimler invests a total amount of around one billion euros. The network already includes the site in Kamenz, Saxony, existing since 2010, at which a second battery factory is currently built with an investment of around EUR 500 million according to latest standards. With the experiences of the current battery production, employees as multiplicators from Kamenz will support the construction of the new battery factory in Beijing thereby supporting the expansion of the production network. According to the company the battery production plant in Beijing will combine newest industry standards and latest production facilities with industry 4.0 technologies. The cells for the new plant’s batteries will be from China.