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Customer LoginsDaimler holds foundation-laying ceremony for Europe's biggest battery factory
The new factory at Daimler's existing site in Kamenz will support Mercedes-Benz cars' EV push over the next decade and will give the German industry Tesla-rivalling battery capacity.
IHS Markit Perspective:
- Significance: Daimler has begun work on the biggest automotive battery plant in Europe, which will be the foundation of the company's future electric car strategy and is located in Kamenz, Germany.
- Implications: The foundation-laying ceremony was attended by Daimler CEO Dieter Zetsche and German chancellor Angela Merkel showing the strategic importance of the facility for both Daimler and the wider German industry with the facility rivalling Tesla's Gigafactory in scale and capacity.
- Outlook: The construction of the plant is a bold but necessary move by Daimler and shows the company's confidence given its recent sales success and strong financial performance. IHS Markit forecasts a steady ramp-up in sales of the EQ standalone EV range that the factory will support.
Daimler has begun construction of the biggest automotive battery factory in Europe and one of the most advanced in the world in Kamenz, Germany, according to a company statement. The wholly-owned ACCUMOTIVE subsidiary is building a second plant to an a smaller existing facility which will cost EUR500million (USD560.85. million). The foundation laying ceremony was attended by all of Daimler's senior management team including executive board chairman Dieter Zetsche, Markus Schäfer (Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain), and Frank Deiss (Head of Powertrain Production and Site Manager Mercedes-Benz Plant Untertürkheim), as well as German chancellor Angela Merkel. Commenting on the strategic importance of the new facility Zetsche said, "The automotive industry is facing a fundamental transformation and we see ourselves as the driving force behind this change. The battery factory in Kamenz is an important component in the implementation of our electric offensive. By 2022, we will have more than ten purely electric passenger cars in series. We also continue to drive forward the hybridization of our fleet. Under the EQ brand, we are creating a holistic ecosystem for e-mobility." The new plant is scheduled to begin operations in 2018 in time to support Daimler's major electric vehicle (EV) push with its EQ cars. The new plant will quadruple the existing production and logistics areas at Kamenz to 80,000 square metres, with the target to more than double cell production by the end of the decade. Total investment at the Kamenz plant will be in the region of EUR1 billion. Schäfer said, "With the second battery plant in Kamenz, we are giving the initial start for the development of the first premium eBattery factory. The local production of batteries is an important success factor in our electric offensive and a crucial element in order to flexibly and efficiently serve the global demand for electric vehicles. This makes our production network very well positioned for future mobility."
The range of cars that the second factory at Kamenz will support will begin to come out of factories in 2019 when the a vehicle that IHS Markit has in its forecast as the EQ D-CUV is scheduled to go into production at Mercedes-Benz car's Bremen facility. This will be the production model of the initial EQ concept which was shown at last year's Paris Motor Show. It will be joined in quick succession by three further EQ models: the EQ D-sedan, the EQ E-CUV and the EQ E-sedan. These will form the core of Mercedes-Benz cars' EV range, which will comprise 10 new EV passenger cars by 2022, covering all segments from the Smart city car to large SUV, sedans and crossovers. ACCUMOTIVE will also produce batteries for Mercedes-Benz energy storage units and 48-volt-systems. The pioneering 48-volt on-board power supply is celebrating its premiere in the new generation of the S-Class and will be gradually introduced in various model series.
Outlook and implications
While the other German OEMs prevaricate over a decision to commit to a largescale battery production site on German soil, most notably VW in this regard, Daimler has taken a bold and posiitive step to put itself at the forefront of EV battery production in Germany. With the German chancellor Angela Merkel attendiing the foundation laying ceremony at Kamenz, it illustrates the importance of the project in what is seen as a vital investment in terms of future proofing the German industry and especially the German premium carmakers, who are so structurally important for the German economy. Merkel herself spoke at the event about the importance of the German industry not being left behind as the move towards electromobility accelerates over the next few years, Speaking at the event she said, "We need long-term horizons and companies that invest in the future, It is important that electric mobility is ready for the market as quickly as possible." However, the difficulty in predicting the ramp up EV sales and when the tipping will occur is well illustrated by the fact that Merkel and the German government are likely to get nowhere near a previously stated target to have one million EVs on the road by 2020. Daimler is positioning itself at the forefront of the German OEM EV push, although Audi will be the first company to launch a standalone large ICE-range-rivalling pure EV next year: the e-tron Quattro, which will go into production in Belgium next year, The ramp-up of sales is still likely to be extremely modest despite the growing resources and commitment Mercedes-Benz, Audi and BMW are putting into the area, with the Mercedes EQ range still selling under 80,000 units by 2022, according to IHS Markit's latest forecast.
About this Article
The above article is from AutoIntelligence Daily by IHS Markit. AutoIntelligence Daily provides same-day analysis of automotive news, events and trends. Get a free trial.