Mercedes-Benz plans to independently produce next-generation electric drivetrains or build a battery plant in Germany with Farasis Energy

According to foreign media reports, Daimler R&D chief Markus Schaefer said that Mercedes-Benz plans to build complete electric drivetrains for its new MMA and MB.EA electric vehicle architectures completely independently starting in 2024. "To achieve this goal, we are significantly increasing the depth of added value and will shift from third-party procurement to internal production."

"Until now, our electric drivetrains have come from external partners," Schaefer said. For example, ZF provides powertrain modules for its mid-size electric SUV EQC, and Valeo-Siemens eAutomotive provides motors for its luxury flagship electric model EQS.

“We want to control the entire motor, battery and power electronics system as much as possible, just like an internal combustion engine,” Schaefer said. This also includes the inverter, which transfers energy from the battery to the engine. “However, we have not yet decided whether to produce the inverter ourselves.”

(Image source: Daimler)

Mercedes-Benz unveiled its new drivetrain at the Consumer Electronics Show (CES) last week with the Vision EQXX concept car, which it says takes up half the space for the same battery capacity, is about a third lighter than before and is highly efficient.

EQXX consumes only 10 kWh per 100 km, while current electric vehicles consume about 15 kWh or more per 100 km. This will greatly extend the range of Mercedes-Benz electric models, especially the next generation of compact cars. EQXX can travel more than 1,000 km (about 600 miles) on a single charge.

(Photo source: Mercedes-Benz)

Schaefer said that as Mercedes-Benz accelerates its transition to electric vehicles, the company is adjusting its production and supply forecasts and demand. "As we accelerate our transition to electric vehicles, we must discuss expanding the production capacity of electric drive systems worldwide. By 2025, half of Mercedes-Benz sales will come from pure electric vehicles or plug-in hybrid vehicles."

He said it would also benefit workers at plants that rely heavily on combustion engines, where unions at Mercedes and other carmakers have been concerned about possible job cuts.

Mercedes has already announced that it will produce high-performance axial electric motors in Berlin that it developed with Yasa, a British electric motor startup acquired by Daimler. Schaefer said a second radial electric motor for its small cars will be produced at Mercedes' Untertürkheim plant.

(Photo source: Mercedes-Benz)

In addition, Mercedes-Benz's self-developed batteries will soon be used in the company's cars. Mercedes-Benz has announced the construction of four factories in Europe with multiple partners. One of the partners is ACC. In addition to Mercedes-Benz, Stellantis and French energy giant Total also hold shares in the company. ACC has selected Douvrin, France and Kaiserslautern, Germany as the sites for its super factories. It is reported that ACC will also build at least one production facility in Germany. Schaefer said, "ACC will become the champion of the European battery industry, and it will definitely need more than two factories."

Schaefer also said that Mercedes-Benz is also preparing other battery factories to meet the expected battery demand. "In the near future, we will also announce the construction of a battery factory in Europe in cooperation with another partner." But he did not provide more details. It is reported that the partner is Chinese battery expert Farasis Energy, and Daimler and Farasis Energy are strategic partners.

Farasis Energy hopes to build a European battery production facility in Bitterfeld, Germany, but has been hesitant to implement the plan. Recently, Farasis Energy's European sales director Stefan Bergold revealed that the company is currently evaluating its localization strategy.