Daimler invests € 100 million in battery expansion

December 02, 2014 // By Christoph Hammerschmidt
Daimler has revealed plans to spend about 100 million euros in coming years to increase production of lithium-ion battery systems in eastern Germany.

The German carmaker plans to expand manufacturing capacity at its battery-making subsidiary Deutsche ACCUmotive. The carmaker expects "high and steadily-growing demand" for electric-car batteries.

Deutsche ACCUmotive is currently building an additional production hall in Kamenz (Saxony). The company supplies batteries for the luxury Mercedes division's hybrid S-Class, E-Class and C-Class models as well as the electric Smart fortwo subcompact.

Steps to increase battery output tie in with Daimler's plans announced last month to phase out production of lithium-ion battery cells at the company's second Saxony-based Li-Tec division by the end of 2015. In contrast to Li-Tec, Deutsche ACCUmotive manufactures entire battery systems which are considered more relevant in the competition.

The Stuttgart-based manufacturer in future plans to buy battery cells for its battery systems at te market. "There is a huge production overcapacity for battery cells at the market," a Daimler spokesperson said. The company regards battery cells as commodity and hopes to benefit from the price pressure at the market. In contrast, battery systems contain a significant amount of relevant IP. "Battery systems are designed into the vehicle, they cannot be bought from the shelf," the spokesperson said.

Daimler aims to employ the bulk of Li-Tec's 250 workers at Deutsche ACCUmotive.For the workers, it is certainly not a big change: Li-Tec and Deutsche ACCUmotive have their Kamenz production sites on two adjacent lots.

Related articles and links:

www.accumotive.de

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