Daimler invests 500m Euros in German lithium-ion battery factory

March 03, 2016 // By PAUL BUCKLEY
German carmaker Daimler AG is investing 500 million Euros in a new battery factory in Germany. The new battery factory will produce lithium-ion batteries for plug-in hybrid and electric vehicles of the group's Mercedes-Benz and smart car brands.

The factory will be located in the Saxon city of Kamenz, Germany. Daimler's subsidiary, Deutsche Accumotive, will produce the batteries.  As a first step, the full Daimler subsidiary has purchased about 20 hectares of land adjacent to the company's existing battery factory.
"To get closer to fully electric driving, we keep investing big in the key component of emission-free vehicles: powerful batteries.  We are now devoting another 500 million Euros to build a second battery factory in Germany. This underlines our commitment to the consistent expansion of electromobility", said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.

With the growing electrification of the automobile, the demand for efficient lithium-ion batteries is rising steadily. Deutsche ACCUMOTIVE's has also entered into the stationary battery storage sector for private and industrial applications which will also create additional growth opportunities.

By the end of 2014, the Daimler subsidiary had already announced plans for an increase in its production capacities and an investment of around 100 m Euros in the expansion of the company's existing battery factory.

"With the purchase of the new land, our production area at the site will be tripled. The previous 20,000 square meters will be stocked up by an additional 40,000 square meters of production space. We will expand the production capacity consistently in the coming years", said Harald Kröger, Head of Development Electrics/Electronics and e-Drive Mercedes-Benz Cars.  The groundbreaking ceremony for the new factory is planned for fall 2016. The topping-out ceremony will then follow in spring 2017. The new production plant is to start operations in summer 2017.

Daimler entered into the business with stationary battery storage with Deutsche ACCUMOTIVE last year. The scalability of the systems enables the use of the lithium-ion batteries in industry for network stabilization and smoothing of peak energy demands.

Mercedes-Benz energy storage units for private households can already be ordered and will soon be installed at customers in collaboration with selected sales partners. In the area of industrial applications, around 29 megawatt will be connected to the network jointly with different partners.