9/11/2019 | 1 MINUTE READ

Daimler to Buy Battery Cells From Farasis Energy

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Daimler AG says it has agreed to add China’s Farasis Energy (Ganzhou) Co. Ltd. to the list of companies supplying battery cells for its electric cars.

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Daimler AG says it has agreed to add China’s Farasis Energy (Ganzhou) Co. Ltd. to the list of companies supplying battery cells for its electric cars.

Farasis is erecting a €600 million ($663 million) plant in Germany with the ability to produce cells that represent multiple gigawatts of energy storage. Capacity will begin at 6 GWh-10 GWh, enough to power 60,000-80,000 EVs per year.

Markus Schaefer, who heads corporate research for Daimler, says cells from Farasis will go to the carmaker’s battery factories in Bruehl, Kamenz and Sindelfingen, Germany. He notes that Farasis will make cells by using electricity from renewable energies such as wind, solar and hydropower.

Daimler also buys cells from other producers, arranging for a combined purchase worth €20 billion ($22 billion). The company expects several years from now to be operating a network of nine battery plants in Europe, Asia and North America.

Mercedes predicted in May that plug-in hybrids and all-electric models would account for more than half its total worldwide sales volume by 2030. The carmaker aims to achieve carbon neutrality with its new cars by 2039 under an initiative it calls Ambition2039.

The first Mercedes EQ model—the EQC small crossover vehicle—went into production in Germany in May.