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

- 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

- Advertisement -

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.

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 -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Buzz

US Aiming to Regain its Semiconductor Leadership

0
Semiconductors are now finding a rightful place in all areas such as national security, information technology, aerospace, and so forth. What is sad is...

Tata Motors And SBI Come Together For EVs

0
India’s largest Public Sector bank, State Bank of India has joined hands with Tata Motors in the space of electric vehicles. Tata Motors, leader...

Ending The Redundancy In The Indian Charging Space

0
Keen on de-cluttering the home and office space, the government is chewing over the idea of having a common charger for all devices. It...

Exclusive

US Aiming to Regain its Semiconductor Leadership

0
Semiconductors are now finding a rightful place in all areas such as national security, information technology, aerospace, and so forth. What is sad is...

Tata Motors And SBI Come Together For EVs

0
India’s largest Public Sector bank, State Bank of India has joined hands with Tata Motors in the space of electric vehicles. Tata Motors, leader...

Ending The Redundancy In The Indian Charging Space

0
Keen on de-cluttering the home and office space, the government is chewing over the idea of having a common charger for all devices. It...

Important Sectors

US Aiming to Regain its Semiconductor Leadership

0
Semiconductors are now finding a rightful place in all areas such as national security, information technology, aerospace, and so forth. What is sad is...

Tata Motors And SBI Come Together For EVs

0
India’s largest Public Sector bank, State Bank of India has joined hands with Tata Motors in the space of electric vehicles. Tata Motors, leader...

Ending The Redundancy In The Indian Charging Space

0
Keen on de-cluttering the home and office space, the government is chewing over the idea of having a common charger for all devices. It...

India Semiconductor Mission: India Needs To Do Enough To Sit On The World Table

0
The government’s strong foot forward with regards to the semiconductor space was a much-needed move and, although late, it is expected to herald the...

Kirloskar Introduces Advanced IoT-Based KirloSmart

0
Kirloskar Brothers Ltd (KBL) recently launched an advanced and upgraded version of its IoT-based pump monitoring system, KirloSmart. It is already a first-of-its-kind IoT-based...

Manufacturing

US Aiming to Regain its Semiconductor Leadership

0
Semiconductors are now finding a rightful place in all areas such as national security, information technology, aerospace, and so forth. What is sad is...

Ending The Redundancy In The Indian Charging Space

0
Keen on de-cluttering the home and office space, the government is chewing over the idea of having a common charger for all devices. It...

Syrma SGS Gets Rs 252 Crores Before IPO

0
With its Initial Public Offering (IPO) opening today, the Electronic manufacturing services (EMS) firm Syrma SGS Technology has already raised Rs 252 crore from...

Slow Progress On Solar Parks Irks Ministry

0
Inefficient solar park projects are set to face strict scrutiny from the Ministry of New and Renewable Energy (MNRE). According to two anonymous sources...
Drone

Army Looking For Indigenous Combat Drones

0
In view of the Make in India policy of the Indian government, the Indian Army has launched a programme called ‘Him Drone-a-thon’. Drone Federation...