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06 07 2017 03

Daimler and BAIC are deepening their cooperation on battery-electric vehicles at their Sino-German production joint venture Beijing Benz Automotive Co., Ltd. (BBAC). The two companies pledged jointly to invest a total of five billion RMB (about US$735 million) in the production of battery electric vehicles (BEVs) under the Mercedes-Benz brand at BBAC in Beijing.

As part of this new strategic framework agreement, Daimler and BAIC Motor are preparing to produce battery electric vehicles by 2020 at BBAC, and to provide the necessary infrastructure for battery localization using Chinese cells, as well as research and development capacities. This commitment includes a three-digit million investment (Euro) in battery production by the joint venture. The new BBAC battery factory will be part of the global battery production network of Mercedes-Benz Cars, in which Daimler is investing around €1 billion (US$1.13 billion).

The battery production network already includes the site in Kamenz, Germany, existing since 2010, at which a second battery factory is currently being built with an investment of around €500 million.

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