Mercedes-Benz will buy a stake in a Chinese battery manufacturing company

Mercedes-Benz will buy a stake in a Chinese battery manufacturing company

July 3, 2020 0 By autotimesnews

The German automaker has taken an important step towards the implementation of its plan to electrify its cars by announcing the purchase of a stake in Foneng Technology.

This collaboration was another milestone in the desire of Mercedes-Benz to implement the “2039 Vision” plan to reduce harmful emissions into the environment. The company intends to engage in the active development and industrialization of high-tech battery technology, as well as reduce the cost of producing batteries for its electric cars.

Mercedes engineers, in cooperation with specialists from a Chinese company, intend to increase the range of electric cars by increasing energy density and reducing charging time. This agreement guarantees the supply of power batteries for Mercedes-Benz, and Funeng Technology will be able to increase production capacity.

To meet the growing demand for batteries for the Mercedes-Benz plant in Germany in the future, Foneng Technology will build a battery manufacturing company in Bitfield-Wolfen in eastern Germany. The plant will create up to 2,000 new jobs and will be carbon-neutral from the moment of construction.

The company intends to buy back about 3% of Funeng Technology. To this end, Daimler Greater China Investment Co., Ltd. is investing tens of millions of euros in an initial public offering of Funen Technology shares – the deal has already been approved by local regulators. This will give Daimler a chance to appoint a representative on the Funen Technology Supervisory Board. It is expected that this post in a year will be occupied by Marcus Schaffer.

The localization of battery production is an important factor in the success of the Mercedes-Benz electrification strategy, as well as a key element in flexibly and effectively meeting the needs of the global electric vehicle market. In its global production network, Mercedes-Benz focuses on the production of high-performance battery systems and the active deployment of a network of battery manufacturing plants around the world – nine plants will be created in the future in seven locations on three continents.