© Mercedes Benz (illustration purpose only) Electronics Production | July 06, 2020
Mercedes-Benz takes equity stake in Farasis
Mercedes-Benz is taking another important step on its journey towards CO₂--neutral mobility. The Stuttgart-based car manufacturer has launched a strategic partnership with Chinese battery cell manufacturer Farasis Energy (Ganzhou) Co., Ltd., including taking an equity stake.
Key elements of the agreement include the development and industrialisation of highly advanced cell technologies, accompanied by goals for cost competitiveness. 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. "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's 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", states 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. With this strategic partnership Mercedes-Benz is deepening its sustainability activities and further strengthening its existing business relationship with the battery cell supplier by taking a stake of around three percent. To this end, Daimler Greater China is investing a multi-million euro amount as part of Farasis' IPO. This equity stake is conditional upon required regulatory approvals. Current contracts with Farasis have been supplemented and include, in addition to technical and commercial contractual components, expanded legal and sustainability requirements. Under certain technological and commercial conditions, the supplier can join projects for the next generations of the Mercedes-Benz EQ products at an early stage.