As it prepares to fully enter the field of electric vehicles, Mercedes-Benz has expanded the territory of electrification in the United States.
Alabama opens a new battery plant
On March 15, Mercedes-Benz Group announced the opening of a new battery factory in Bibb County, Alabama. Meanwhile, Mercedes-Benz will produce the EQS SUV and EQE SUV at its Tuscaloosa plant in Alabama as part of its plans to produce pure electric vehicles in the world's three largest automotive markets. The new battery plant will supply batteries for the new EQS SUVs and EQE SUVs, highlighting the importance of the United States in Mercedes-Benz's global production network and Alabama's position as an export center for Mercedes-Benz luxury SUVs.
Image source: Mercedes-Benz
The new battery plant, located near the Tuscaloosa auto plant, covers 270 acres and will employ up to 600 workers. The plant will produce Mercedes' next-generation batteries, which the company says have a higher energy density, faster charging speed and new battery chemistry, with an 8:1:1 ratio of nickel, cobalt and manganese, reducing the cobalt content to around 10 percent, improving sustainability.
These high-performance lithium-ion batteries will be assembled into a complete system on a production line of about 300 meters long with more than 70 benches, and by adopting a fully digital production process, multiple components will be combined, including up to 12 battery modules and so-called EE separators, for the intelligent integration of power electronic systems.
Bibe County Battery Factory; Image credit: Mercedes-Benz
With the completion of the new plant, Bib County will be part of Mercedes-Benz's global battery production network, with battery factories on three continents, including Kamenz in Germany, Beijing in China, Bangkok in Thailand, Jawor in Poland and Stuttgart in Germany. Individual factories are responsible for supplying local car production and, if necessary, can be exported.
"The new battery plant will be a key enabler of our EV program, and the U.S. market will play an important role in mercedes-Benz's continued success." We are proud that our new electric SUV will also be produced in Alabama for the global automotive market. Said J rg Burzer, a member of the Mercedes-Benz Group's board of directors responsible for production and supply chain management.
Join hands with Envision Power to accelerate the transformation of pure electricity
Market conditions allow, Mercedes-Benz plans to fully electrify by 2030. To achieve this, the company and its partners plan to build eight battery factories around the world by 2030, with a production capacity of 200 GWh. In addition, Mercedes-Benz will expand its partnerships with the world's leading battery technology companies.
In order to localize important suppliers, Mercedes-Benz announced a strategic cooperation with Envision Power, a battery technology company owned by Envision Technologies Group. Envision Power will build a new digital zero-carbon battery gigafactory in the United States and achieve mass production in 2025, which is also Envision Power's second battery factory in North America. Envision Power will supply Battery Modules to Mercedes-Benz around 2025 through this new plant, ensuring the production capacity of the Mercedes-Benz EQ series in the United States in the coming years.
Image source: Vision Power
Markus Schaefer, Board Member and Chief Technology Officer of mercedes-Benz Group, said: "In order to become a leading luxury car brand in the era of electrification, Mercedes-Benz is accelerating the launch of its EQ series. This year, we will launch 9 pure electric Mercedes EQ models worldwide, and we will also launch more exciting new products. Building a strong network of battery partners in line with our global production strategy is a very important milestone in our carbon neutrality. ”
"Envision Power will be our main battery supplier, securing production capacity in the United States for the Mercedes-Benz EQ series in the coming years. Vision's leading zero-carbon solutions and power battery technology not only ensure the sustainability and safety of our battery supply chain, but also allow us to provide customers with the best power battery technology. ”
Flexible production
Mercedes-Benz has invested more than $7 billion in Alabama since the 1990s, of which $1 billion has been invested in battery plants, logistics centers and upgraded production lines to produce electric vehicles. Today, Mercedes-Benz USA employs around 4,500 people, together with parts and service providers, to approximately 11,000 jobs in the region. Mercedes-Benz's Tuscaloosa plant has produced about 4 million vehicles since 1997 and about 260,000 SUVs in 2021 alone, and almost two-thirds of the plant's annual SUV production is exported, making it one of the largest auto export plants in the United States.
Mercedes-Benz Tuscaloosa factory; Image source: Mercedes-Benz
The plant is now on the cusp of transformation as it creates a new ecosystem of battery suppliers and ev parts makers, and is one of seven factories where Mercedes-Benz will produce electric vehicles.
The plant will produce both gasoline-powered and electric vehicles, with EV production integrated into the plant's existing bodywork, paint shop and assembly line. Yes, Mercedes does not build pure electric vehicle factories, but maintains the flexibility of the production line to adapt to market demand. As Burzer says, "The Mercedes-Benz global production network is digital, sustainable, efficient and flexible. ”
Mercedes-Benz EQ series global production network (complete vehicle and battery); image source: Mercedes-Benz
Mercedes also previewed a large electric SUV that will be produced at the nearby Tuscaloosa plant in Alabama. The EQS SUV and a smaller EQE electric SUV will also be produced in Alabama, joining Mercedes-Benz's growing lineup of electric SUVs in an attempt to challenge Tesla in the U.S., China and European markets.
According to AutoForecast Solutions, U.S. production of the EQS electric SUV will begin in June, and assembly of the EQE electric crossover will begin in October next year. Once production rises, the Tuscaloosa plant is expected to produce 6,000 electric vehicles per month.
Under the situation in Russia and Ukraine, we will not reduce the expenditure on electric vehicles
Mercedes-Benz CEO Ola K llenius said that even if the company is dealing with supply chain cost pressures caused by the intensification of the situation in Russia and Ukraine, the group will not cut future spending on electric vehicles and will continue to invest in future technologies and products.
"We have been protecting investments in future technologies and products," Conlinson said, adding that this is the seed we will reap in the future, "even in 2020, when the epidemic is raging, we have not cut back on research and development spending on key projects." ”
Conlingson is trying to accelerate Mercedes-Benz's shift from internal combustion engine technology products to electrification, relying on software and computing power, and Mercedes plans to invest more than $46 billion to develop electric vehicles between 2022 and 2030.