By Joseph White
TUSCALOOSA, Ala., March 15 (Reuters) – Mercedes-Benz AG opened its first U.S. electric vehicle (EV) battery factory on Tuesday and said Japanese battery maker Envision AESC would supply battery modules for U.S.-made Mercedes EVs from a new U.S. plant by the middle of the decade.
Alongside the launch of its Bibb County, Alabama battery plant, Mercedes also previewed a large electric SUV to be built at the nearby Tuscaloosa, Alabama assembly facility this year.
The battery plant, which will employ 600 workers, and the assembly facility are part of a 40 billion euro ($44 billion) drive by Mercedes to go all electric by 2030, where markets allow.
Mercedes, which plans to produce EV batteries in Europe, North America and Asia, aims to have eight cell factories with partners around the world with capacity to produce 200 gigawatt hours a year by the end of the decade.
Kaellenius is trying to accelerate the shift by Mercedes from combustion technology company to a firm whose products do not emit carbon and rely on software and computing power.
Rocketing gasoline prices since Russia’s invasion of Ukraine has amplified the challenges for established automakers that still rely on fossil fuel-powered vehicles for profits.
The Mercedes Alabama assembly plant, which turns 25 this year, can build both electric and combustion vehicles, and is one of the largest Mercedes vehicle-making plants in the world.
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