Electric First: Mercedes-Benz and CATL team up for leadership in future battery technology

August 05, 2020 - Mercedes-Benz and CATL have entered the next stage of their strategic partnership and will create cutting-edge battery technology in support of the high-volume electrification of the Mercedes-Benz model portfolio.

Mercedes-Benz is accelerating its "Electric First" strategy with advanced, CO₂-neutrally produced battery cells, modules and systems supplied by CATL (Contemporary Amperex Technology Co., Limited), a technology leader in lithium-ion batteries. The agreement covers the full range of battery technologies, from cells across modules for Mercedes-Benz passenger cars to entire battery systems for Mercedes-Benz Vans in promising innovative technology configurations. This also includes the CATL cell-to-pack (CTP) design, which eliminates conventional modules and integrates the cells directly into the battery.

We intend to lead in battery technologies, so we are now combining our own research and development expertise with bold partners. We will integrate cutting-edge battery systems to create luxury cars with outstanding range, charging speed, safety and sustainability. Working with CATL will see us accelerate our transformation towards carbon-neutrality. CATL will be a major supplier securing capacity for the next generations of our EQ products in the years to come.

Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG, responsible for Daimler Group Research and Mercedes-Benz Cars COO

Electrification of its model portfolio with innovative battery technologies

Battery cells are at the heart of highly complex battery systems. Their chemistry contributes significantly to the performance, range and service life of electric vehicles. Through its strategic partnership with CATL, Mercedes-Benz will advance its development of current and future best-in-class lithium-ion batteries. The two partners have already started working on future battery generations to be introduced in a number of vehicles within the next few years. The clear goal is to shorten development cycles, significantly increase the ranges of future batteries through advances in energy density and reduce charging times. In order to make electrification even more attractive for customers in the luxury segment, the goals set are ambitious: With the EQS luxury sedan, which will be delivered to customers next year, the development goal is a long-distance range of more than 700 km (WLTP range) and a doubling of the charging speed compared to current models. The Mercedes-Benz EQS will also be equipped with CATL cell modules.

Battery products from carbon-neutral production

With "Ambition2039", Mercedes-Benz is pursuing the long-term vision of a climate-neutral new passenger car fleet and is actively driving the transformation to CO₂-neutrality. In order to minimize the carbon footprint of current and future vehicle generations, the partners have agreed to the carbon-neutral production of battery products. To enable this, CATL will use electricity from renewable energy sources, such as wind, solar and hydropower for its production. CO₂-neutral battery cell production alone can save over 30% of the CO₂ footprint of an entire battery. At the beginning of 2020, Mercedes-Benz and CATL had already launched a joint pilot project using blockchain technology to create transparency on the emissions of climate-damaging gases and the proportion of secondary material along the battery cell supply chain. The next step is to significantly reduce the reliance on raw material mining through the recycling of end-of-life batteries.

Within the framework of this newly established strategic partnership, CATL fully commits to Mercedes-Benz AG’s sustainability goals including ‘Ambition 2039’. This includes sustainable production with renewable energy, the minimum CO₂ footprint in terms of logistics within the whole supply chain and respect for all aspects of social responsibility. CATL will ensure CO₂ neutral battery production and maximize CO₂ reduction in the battery supply chain for the next generation Mercedes-Benz EQ starting with the EQS. I am convinced that this partnership will open new opportunities for both companies to create a sustainable business and speed-up the transition of our industry.

Zhou Jia, president of CATL

Industrialization of a key technology in Germany

The strategic partnership of Mercedes-Benz and CATL accelerates the further development and industrialization of cutting-edge battery technologies in Germany. With the construction of CATL’s Thuringia plant, CATL is developing a European service system to offer Mercedes-Benz more competitive products, as well as a smooth supply. This will allow Mercedes-Benz to further increase the degree of localization in procurement and to purchase battery products from the CATL plant near Erfurt in the future. In order to maintain competitiveness, the company continues to rely on a balanced set of suppliers.

Within its global production network, Mercedes-Benz focuses on the production of highly efficient battery systems and the establishment of a global battery production network. In future, it will consist of nine factories at seven locations on three continents. Local battery production is an important success factor for the electric offensive of Mercedes-Benz AG and the key element in being able to flexibly and efficiently meet the global demand for electric vehicles.

About CATL

Contemporary Amperex Technology Co., Limited (CATL) is a global leader in the development and manufacturing of lithium-ion batteries, with businesses covering R&D, manufacturing and sales in battery systems for new energy vehicles and energy storage systems. In 2019, the company's EV battery sales volume reached 40.25 GWh worldwide.

Headquartered in Ningde, China, CATL has more than 26,000 employees around the world as of 2019 and subsidiaries in Beijing, Liyang (Jiangsu Province), Xining (Qinghai Province) and Yibin (Sichuan Province), as well as in Munich (Germany), Paris (France), Yokohama (Japan), Detroit (USA) and Vancouver (Canada). In addition, the company owns and operates battery manufacturing facilities in Fujian, Jiangsu, Qinghai and Sichuan provinces, and a European plant located in Arnstadt (close to Erfurt), Germany, its first overseas plant that is currently under construction.

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