German car maker Daimler announced that they would cooperate with their Chinese partner Beijing Automotive Group to establish an electric car battery plant in China.
With an investment scale of EUR655 million, which is about USD740 million, this plant will not only make electric car batteries, but also will produce Mercedes-Benz battery-powered cars.
Hubertus Troska, board member of Daimler, said in a statement that by 2025, China would account for a large share of electric car sales of Mercedes-Benz. Therefore, localized manufacturing would be the key to the success of their electric car portfolio.
With the help of Beijing Automotive Group, Mercedes-Benz will be able to save 25% tariff for its import cars sold in China.
It is said that Daimler will invest about USD1.13 billion for battery production around the world. The company already established a battery factory in Landkreis Kamenz, Germany and they plan to build the second battery factory on the same site. Those two factories will be able to meet the battery demands of the first batch of Mercedes-Benz electric cars.