German car giant Daimler AG plans to partner with Stylantis and Total Energies to expand the size of their European battery factory to more than 7 billion euros ($ 8.2 billion) to supply batteries for Daimler’s Mercedes-Benz electric cars.
Daimler said Friday that it will have a 33% stake in the Automotive Cell Company for batteries. The new company aims to reach at least 120 gigawatt-hours of capacity by the end of the decade, doubling the amount set by the company’s two founding partners.
Separately, Stellantis said the project was still open to adding more partners.
Mercedes will invest nearly 500 million euros next year in the project, and expects its total expenditures to be less than 1 billion euros.
“This investment represents a strategic milestone on our path toward carbon neutrality,” said Ola Källenius, CEO of Daimler, Bloomberg News. “The new partnership will allow us to secure supplies, benefit from economies of scale, and provide our customers with superior battery technology.”
Philippe Hoshoeh, an economist at Jefferies Financial Services Group, said Mercedes’ investments would help “the Automotive Cell Company rise” as a potential European leader in the battery race.
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