Daimler invests $125m on local car batteries production

Over the coming years, Daimler, parent company of Mercedes-Benz, third largest luxury automaker in the world, will be investing around 100 million euros ($125m) to lift the local output of car lithium ion battery packs.

The company’s Deutsche ACCUmotive, the automaker’s battery-building unit in Saxony, will cater for the increased production plans, according to a Daimler statement, as the German carmaker forecasts “high and steadily-growing demand” for electric-car batteries. The division is in charge of producing the battery packs for the carmaker’s Mercedes-Benz hybrid S-, E- and C-class models.

Such plans to increase the battery capacity output fall in line with the announcement Daimler made last month. The company said then it would gradually stop production of lithium ion battery cells at its second Saxony-based Li-Tec unit before the end of next year. About 250 workers would be transferred to Deutsche ACCUmotive unit.

The automaker – which has partnered even with US electric automaker Tesla Motors for the batteries and electric powertrain of the battery-operated version of the B-Class compact, also plans to source cheaper battery cells for its 2016 electric Smart model from South Korea’s LG Chem.