Daimler to take a 3% stake in Farasis Energy, which will build a new battery cell plant in Germany
Mercedes-Benz has announced today a strategic partnership and equity stake in Chinese battery cell manufacturer Farasis Energy (Ganzhou) Co., Ltd.
The two already partnered for quite some time and in 2019 Daimler officially selected Farasis Energy as a battery cell supplier for the new EQ models. Part of the partnership was a new lithium-ion cell plant in Germany (€600 million investment for 6-10 GWh). This year rumors emerged that Daimler will participate in the upcoming Farasis Energy’s IPO.
Mercedes-Benz announces strategic partnership and equity stake in battery cell manufacturer Farasis
Now all the cards were revealed and several official points of the agreement include joint “development and industrialization of highly advanced cell technologies, accompanied by ambitious goals for cost competitiveness. The technological focus is on significant increases in range through advances in energy density and the reduction of charging times”
“Current contracts with Farasis have been supplemented and include, in addition to technical and commercial contractual components, expanded legal and sustainability requirements. Under certain technological and commercial conditions, the supplier can join projects for the next generations of the Mercedes-Benz EQ products at an early stage. As a strategic partner, Farasis is a fixed cornerstone in the existing set of Mercedes-Benz battery cell suppliers. A balanced supplier set is the basis for access to the best possible technology and a prerequisite for competitiveness.”
More importantly, to secure supplies of lithium-ion cells for Mercedes-Benz and to secure demand for Farasis Energy’s planned construction of production capacity, the two will form a minor capital alliance and build a new battery plant in Germany:
“With this strategic partnership Mercedes-Benz is deepening its sustainability activities and further strengthening its existing business relationship with the battery cell supplier by taking a stake of around three percent. To this end, Daimler Greater China is investing a multi-million euro amount as part of Farasis’ IPO. This equity stake is conditional upon required regulatory approvals. It will give Daimler the option to nominate a representative for a seat on the supervisory board of the battery cell manufacturer. 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 would intend to take the seat after a period of 12 months subject to regulatory approval of voting process. “
Farasis Energy has two production sites in China (Ganzhou and Zhenjiang). The new manufacturing base in Zhenjiang was planned for an annual capacity of 20 GWh. According to the press release, Farasis Energy intends to expand cell production not only to Europe but also to the U.S.
The company employs more than 3,500 people worldwide, and has research and development centers in China, Germany and the US.
Source: Read Full Article