battery production Archives

The all-electric future of Mercedes-Benz

Mercedes-Benz is getting ready to go all electric by the end of the decade – but only where market conditions allow. The carmaker, like a few others, understands that there will be some markets where electrification may not be sufficiently wide and conventionally powered vehicles will still be in demand.

Mercedes-Benz began in journey to electrification some years back and by 2022, it will have battery electric vehicles (BEV) in all segments which the brand competes in. From 2025 onwards, all newly launched vehicle architectures will be electric-only and customers will be able to choose an all-electric alternative for every model the company makes.

“The EV shift is picking up speed – especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade,” said Ola Kallenius, CEO of Daimler AG and Mercedes-Benz AG. “This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era.”

To facilitate this shift, Mercedes-Benz has a comprehensive plan which includes significantly accelerating R&D. In total, investments into battery electric vehicles between 2022 and 2030 will amount to over €40 billion. Accelerating and advancing the EV portfolio plan will bring forward the tipping point for EV adoption.

The Technology Plan
In 2025, Mercedes-Benz will launch three electric-only architectures – MB.EA, AMG.EA and VAN.EA. These will cover a broad spread of products, including those in the commercial vehicle sector. MB.EA will be for all medium to large size passenger cars, establishing a scalable modular system as the electric backbone for the future EV portfolio. AMG-EA, as the three letters hint, will be a dedicated performance electric vehicle platform, while VAN.EA will usher in a new era for purpose-made electric vans and Light Commercial Vehicles.

*The eATS is the engine unit of electric vehicles. The eATS consists essentially of the three subsystems: an electric motor, its power electronics and the transmission part for power-transmission.*

After reorganising its powertrain activities to put planning, development, purchasing and production under one roof, Mercedes-Benz will deepen the level of vertical integration in manufacturing and development, and insource electric drive technology. In-house electric motors, such as the eATS 2.0, are a key part of the strategy with a clear focus on efficiency and the overall cost of the entire system. China, the world’s largest new energy vehicle market, which is home to hundreds of companies and suppliers specialized in EV components and software technologies, is expected to play a key role in accelerating the Mercedes-Benz electrification strategy.

Ensuring supply of batteries
To ensure that there will be an assured supply of batteries, Mercedes-Benz will need a battery capacity of more than 200 Gigawatt hours. This calls for setting up 8 Gigafactories for producing battery cells, and is in addition to the already planned network of 9 plants dedicated to building battery systems.

Battery production is a very important part of electrification since batteries are needed in every vehicle. Mercedes-Benz has already established a network of battery production sites around the world, with the one in Thailand (below) having started operations in 2019.

Next-generation batteries will be highly standardized and suitable for use in more than 90% of all Mercedes-Benz cars and vans while being flexible enough to offer individual solutions to all customers. Cell production will give Mercedes-Benz the opportunity to transform its established powertrain production network. By continuously integrating the most advanced battery cell technology in cars and vans, Mercedes-Benz aims to increase range during the production lifecycle of a model.

The recharging network
For EV owners, the issue of recharging is an important one and unless they can be assured of a convenient and widespread network, switching to an EV will not be readily considered. In this area, Mercedes-Benz is also working on setting new standards in charging that will allow customers to plug-in, charge and unplug without extra steps needed for authentication and payment processing.

As for networks, Mercedes me Charge is already one of the world’s largest charging networks and currently has more than 530,000 AC and DC charging points worldwide. Mercedes-Benz is also working with Shell on expanding the charging network which will have over 30.000 charge points by 2025 in Europe, China, and North America.

Mercedes-EQ EQS – the first luxury EV limousine

Volvo Car Group aims to have assured battery supply with gigafactory joint venture

Just as fuel, whether petrol or diesel, is a necessary component for a car with an internal combustion engine to run, electricity is necessary for a full-electric or hybrid electric vehicle to run. Like the liquid fuels which are stored in containers on board the car, electricity is also stored in a battery pack which can be ‘refuelled’ by recharging the pack.

Since demand for batteries will keep growing – even accelerating as electrification progresses – the bigger carmakers that have the financial resources are finding ways to assure supply in future. Some, like BMW, Mercedes-Benz and Hyundai have set up factories around the world while others are establishing joint ventures for such production facilities.

*Lithium-ion battery pack from a current Volvo PHEV model.*

Develop sustainable battery production
The Volvo Car Group has announced plans to establish a joint-venture with Swedish battery company Northvolt to develop and produce more sustainable batteries, tailored to power the next generation of fully electric Volvo and Polestar vehicles.

As a first step for the 50:50 joint-venture, the two companies intend to set up a R&D centre in Sweden that will begin operations in 2022. The centre will draw on the battery expertise within both companies and develop next-generation, state-of-the-art battery cells and vehicle integration technologies, specifically developed for Volvo and Polestar models.

New gigafactory to be built
More significantly, the joint-venture will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours (GWh) per year, with production scheduled to start in 2026. As part of the plans, Volvo Car Group also looks to source 15 GWh of battery cells per year from the Northvolt Ett battery plant in Skelleftea, Sweden, starting in 2024.

*Rendering of the Northvolt Ett battery plant in Sweden when it is completed.*

The new gigafactory, planned to be powered by 100% clean energy, is expected to employ around 3,000 people. The location of the new plant is yet to be decided. The first model to use battery cells developed through the joint-venture will be the electric successor to current XC60 SUV.

This development is a vital one for Volvo Cars’ ambitious electrification plans that will see 50% pure electric vehicles by the middle of this decade and, by 2030, only fully electric cars will be sold. Assured supply is therefore crucial to long-term plans and while planners in some countries imagine that policies affecting the auto industry can be introduced within a short period, the industry requires many years to prepare for changes and execute them.

*Future Polestar models will also use batteries from the joint-venture factory.*

For Polestar, it gives a further boost to its European growth ambitions and underlines its commitment to the ‘Polestar 0’ project, which aims to create a truly climate-neutral vehicle by 2030.

Reduce environmental footprint
Today, the production of batteries for Volvo Car Group’s fully electric cars represents a large part of the car’s total lifecycle carbon emissions. By working with Northvolt and producing batteries near its manufacturing facilities in Europe, Volvo Car Group can reduce the environmental footprint attributable to battery sourcing and production for its future cars.

Volvo Cars to develop electric motors in-house

Piston.my