Mercedes-Benz Takes Stake in Chinese EV Battery Maker Farasis Energy

0
450
Advertisement
  • Mercedes-Benz is taking a stake of around three per cent in Farasis Energy
  • Daimler Greater China is investing a multi-million euro amount as part of Farasis’ IPO
partnership
Pic Source – Wallpaper Flare

Mercedes-Benz has launched a strategic partnership with the Chinese battery cell manufacturer Farasis Energy (Ganzhou) Co., Ltd. including taking an equity stake. Mercedes-Benz said that with this strategic partnership, it is deepening its sustainability activities and further strengthening its existing business relationship with the battery cell supplier by taking a stake of around three per cent. It said that the key elements of the agreement include the development and industrialisation of highly advanced cell technologies along with goals for cost competitiveness.

Markus Schäfer, member of the board of management of Daimler AG and Mercedes-Benz AG, responsible for Daimler Group Research and Mercedes-Benz Cars COO said, “We are very pleased to further expand our partnership with Farasis in taking a decisive step within the implementation of our electric strategy ‘Electric first’. By strategically expanding our business relationship, we are pushing the electrification of our model portfolio ahead. With this agreement, we contribute our expertise in the field of battery cell development. At the same time, we are providing a boost for Farasis’s new plant and promoting the sustainable development of a key technology and its establishment in Germany. We share with our partner the common vision of a more sustainable world through CO2-neutral mobility.”

Plant for battery cells in Bitterfeld-Wolfen

It said that the technological focus is on significant increases in range through advances in energy density and the reduction of charging times. The contract will provide a secure source of supply of battery cells for Mercedes-Benz’s electrification strategy. It added that Farasis will gain security for its planned construction of production capacity. Farasis is building a plant for battery cells in Bitterfeld-Wolfen to meet the increasing demand for German Mercedes-Benz plants in the future. It said that this will create up to 2,000 jobs. The East German site is designed as a CO2-neutral factory from the start.

Advertisement

Hubertus Troska, member of the board of management of Daimler AG, responsible for Greater China said, “China is the world’s largest electric car market with tremendous potential for further development. We are already working with strong and trusted partners in China, not only to enhance our local footprint but also to strengthen our competitiveness worldwide. By taking a stake in a Chinese battery cell manufacturer for the first time, we will further leverage the potential of advanced technology partners in the market, enabling us to pursue our electric strategy globally. In the future, we will continue to strengthen our activities in research and development, production and purchasing in China.”

Investing a multi-million euro amount as part of Farasis’ IPO

Daimler Greater China is investing a multi-million euro amount as part of Farasis’ IPO. This equity stake is conditional upon required regulatory approvals. This will give Daimler the option to nominate a representative for a seat on the supervisory board of the battery cell manufacturer. Markus Schäfer, member of the board of management of Daimler AG and Mercedes-Benz AG, responsible for Daimler Group Research and Mercedes-Benz Cars COO would intend to take the seat after a period of 12 months subject to regulatory approval of voting process.

The company said that current contracts with Farasis have been supplemented and it includes in addition to technical and commercial contractual components, expanded legal and sustainability requirements. Under certain technological and commercial conditions, the supplier can join projects for the next generations of the Mercedes-Benz EQ products at an early stage

Advertisement

SHARE YOUR THOUGHTS & COMMENTS

Please enter your comment!
Please enter your name here

Are you human? *