German luxury carmaker Mercedes Benz will be investing a sum of 40 billion Euros into electric car batteries over the next decade to make a complete shift towards electric vehicles. The company on Thursday unveiled a comprehensive plan and a timeline to mark a turnaround from ‘electric first’ to ‘electric only’.
According to Mercedes, by the year 2022, all car segments of the company will have battery electric vehicles while starting from 2025, customers will have the option to go for an electric alternative for each of its models. The carmaker will only launch electric vehicle architecture from 2025. For this purpose, Mercedes will be launching three electric-only architectures- MB.EA, AMG.EA and VAN.EA.
“We will be ready as markets switch to electric-only by the end of this decade,” said Ola Källenius, CEO, Mercedes.
Over the next decade, Mercedes Benz will invest to create eight Gigafactories and will partner with new companies for developing and producing the battery cells required in EVs. The carmaker aims to reach a battery cell capacity higher than 200 Gigawatt hours as moves towards an emission-free and software-driven future.
Mercedes claimed that it would make the transformation while ensuring that it meets the profitability targets. “Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era,” Källenius said in a statement.