German automaker Daimler AG recently announced that it is investing $562 million in its second lithium-ion battery factory for electric vehicles and stationary storage located in Kamenz, Germany.
Capacity is expected to be quadruple that of the first plant, Daimler said. The facility is run by wholly owned subsidiary ACCUMOTIVE.
Daimler also is pledging an additional $562 million to expand battery production worldwide.
“The automotive industry is facing a fundamental transformation and we see ourselves as the driving force behind this change,” Dieter Zetsche, chairman of the Board of Daimler AG and head of Mercedes-Benz Cars, said. “The battery factory in Kamenz is an important component in the implementation of our electric offensive. By 2022, we will have more than 10 purely electric passenger cars in series. We also continue to drive forward the hybridization of our fleet. Under the EQ brand, we are creating a holistic ecosystem for e-mobility.”
Production is expected to begin in mid-2018.
A ceremony was held for dignitaries to tour the site, with guests including Chancellor Angela Merkel and members of Daimler’s executive staff.
Daimler’s plant is similar to Tesla’s Gigafactory, which also plans to go into production next year.
The cost of lithium-ion batteries is expected to decrease 41 percent by 2021, according to Bloomberg New Energy Finance.