March 16, 2022
(press release)
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The world’s most valuable luxury automotive brand is getting ready to go all electric by ramping up production of electric cars on three continents. The new U.S. battery factory underscores the importance of the United States within the Mercedes-Benz global production network and the status of Alabama as an export hub for luxury SUVs also in the electric era. Mercedes-Benz will produce the EQS SUV and EQE SUV in its plant in Alabama, as part of a global push to produce all-electric vehicles at seven locations on three continents. The state-of-the-art battery factory in Bibb County will provide batteries for the new EQS SUV and the EQE SUV. The Mercedes-Benz plant in Tuscaloosa, Alabama, has been the production plant for large SUVs bearing the three-pointed star since 1997. Now the plant goes electric with the EQS SUV. Mercedes-Benz Made in America The highly flexible Mercedes-Benz production system allows different models and drivetrains to be assembled on a single production line enabling the plant to adapt to shifts in customer demand. In addition to the GLE, GLE Coupé, GLS and Mercedes-Maybach GLS two electric models will be added to the production line, equipped with batteries from the nearby Bibb County plant. The opening of our new battery plant in Alabama is a major milestone on our way to going all-electric. With our comprehensive approach including a local cell sourcing and recycling strategy, we underline the importance of the U.S., where Mercedes-Benz has been successful for decades. We’re proud to create new, future-proof jobs to build all-electric SUVs ‘Made in the USA' at a plant that is such an established part of our production family since 25 years. The global Mercedes-Benz production network is digital, sustainable, efficient and flexible. Now the new battery plant, with its highly qualified and motivated U.S. workforce, will be a crucial driver of our electric vehicle roll-out plan. Team USA will play a major role in the continued success of Mercedes-Benz and we are proud that our new electric SUVs will also be built here in Alabama for global markets. To be the leading luxury brand also in an all-electric future, Mercedes-Benz is accelerating the roll-out of its EQ models. This year our portfolio will include nine fully electric Mercedes-EQ models globally, and we have further exciting new products in the pipeline. Establishing a strong battery cell partner network in accordance with our global production strategy is a very important milestone on our way to CO₂-neutrality. Bibb County added to global battery production network The battery system, which will be fitted to the 7-seater EQS SUV, employs a modular design already seen in the EQS and EQE and uses highly advanced cell chemistry containing nickel, cobalt and manganese in a ratio of 8:1:1. The reduction of cobalt content to around ten percent, in addition to the CO₂-neutral production of the batteries, enhances sustainability. With the new plant, Bibb County becomes part of the Mercedes-Benz global battery production network which stretches factories on three continents including in Kamenz, Germany, Beijing China, Bangkok Thailand, Jawor Poland and Stuttgart, Germany. The individual factories supply local vehicle production and, if necessary, are ready for export. Mercedes-Benz is investing more than one billion Euros in the development of the global battery production network. In order to localize important suppliers, Mercedes-Benz is partnering with one of the world's leading battery technology companies Envision AESC. Envision AESC will supply the Mercedes-Benz battery factory in Bibb County with high-performance battery modules from a new plant within the U.S., supplies will commence from mid of the decade.
Since the 1990s, Mercedes-Benz has invested a total of more than seven billion dollars in Alabama. Of this amount 1 billion dollars was invested into the battery plant, the logistics centres and to upgrade the production line to make EV’s. Today, Mercedes-Benz U.S. International (MBUSI) employs around 4,500 people and also secures an estimated additional 11,000 jobs with suppliers and service providers in the region. Around four million vehicles have left the Tuscaloosa plant since 1997, with around 260,000 SUVs rolling off the production line in 2021 alone. Roughly two-thirds of annual production is exported, making MBUSI one of the largest exporters of automobiles from the US.
Ola Källenius
Chairman of the Board of Management of Mercedes-Benz Group AG
Jörg Burzer
Member of the Board of Management of Mercedes-Benz Group AG, responsible for Production and Supply Chain Management
Markus Schaefer
Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Development and Procurement
Production of the high-performance lithium-ion batteries for the EQS SUV and EQE SUV is CO₂-neutral. High-performance lithium-ion batteries are assembled into a complete system on a production line around 300 meters long with more than 70 work stations. Using a fully digitalized production process, a variety of components are combined, including up to twelve cell modules and the so-called EE compartment, for the intelligent integration of the power electronics. Up to 600 new jobs will be created in Bibb County.
New strong battery partnership enables ramp-up of Mercedes-EQ SUVs in Tuscaloosa
Mercedes-Benz will be ready to go fully electric by the end of the decade – wherever market conditions allow. To reach its target the company, together with partners, plans to build eight cell factories worldwide with a production capacity of 200 Gigawatt hours by the end of the decade. Mercedes-Benz will expand its partnerships with the world’s leading battery technology companies.
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