According to foreign media reports, Mercedes Benz chief technology officer Markus Schaefer said on 8 July that the company will wait and see if demand for electric vehicles will pick up before increasing battery capacity.
Mercedes-Benz had said in 2022 that by 2030, the company will need more than 200 GWh of battery capacity, and plans to build eight battery factories around the world with partners, four of which are located in Europe.
However, with current market demand for electric vehicles lower than many automakers expect, Mercedes said earlier this year that it doesn’t expect sales of electric vehicles (including hybrids) to reach 50 per cent of the company’s total sales until 2030, five years later than its previous forecast of 2025.
Schaefer said on 8 July that the 200 GWh capacity expectation was based on the assumption that by 2030, all of Mercedes’ roughly 2 million vehicles sold annually would come from electric vehicles. “Is 200 GWh of battery capacity still necessary? That’s a question that will take time to decide.”
In 2022, Mercedes signed a supply agreement with Chinese battery maker Ningde Times, whose 100 GWh capacity Hungarian plant will supply Mercedes with batteries, but the company did not disclose the size of the deal.
Mercedes will also receive batteries from a 40 GWh-capacity plant in France through its joint venture ACC, in which it holds a 30 per cent stake. ACC last month suspended plans to build two more plants in Germany and Italy due to low demand for electric vehicles. Mercedes also has other battery suppliers in the US and China.
We are relatively flexible,” Schaefer said. When we are more transparent about our needs, we will consider our next plans.” He also referred to Mercedes’ current supplier relationships, adding, “That’s enough for us to deal with the next phase of demand.”
Mercedes-Benz has not reduced its investment in electrifying its lineup, and Schaefer said it will not be investing much more money into internal combustion engine vehicles, other than plans to update vehicles to comply with emissions regulations.
Nonetheless, Mercedes CEO Ola Kaellenius said in February that the company would ensure its lineup of internal combustion engine vehicles would remain competitive to meet demand in the next decade.