Daimler, the parent company of Mercedes-Benz, is set to construct a new battery production facility in Beijing, China.
The plant will be established by Beijing Benz Automotive Co (BBAC), a joint venture formed by Daimler and BAIC Motor.
Scheduled to become operational by 2020, the plant is touted to be Daimler’s first battery production factory outside Germany.
Both Daimler and BAIC intend to jointly invest RMB5bn (€655m) to produce Battery Electric Vehicles (BEVs) under the Mercedes-Benz brand and in battery localization at the site. This includes a three-digit million investment (Euro) for the battery production by the JV.
Daimler said that the battery production plant in Beijing will combine newest industry standards and latest production facilities with industry 4.0 technologies.
Hubertus Troska, member of the board of management of Daimler, responsible for Greater China, said: “We are investing in the world’s largest market for Battery Electric Vehicles. By 2025, the Chinese market will have a substantial share in sales of Mercedes-Benz electric vehicles.
“Therefore, local production will be key to the success of our EV portfolio, and crucial to flexibly serving local demand for electric vehicles.”