Mercedes-Benz is slowing battery manufacturing plans amid decrease demand for electrical automobiles

Mercedes-Benz will wait to see if the demand for electrical automobiles rises earlier than rising the battery capability, for the reason that sale of electrical automobiles means that it’ll not want the capability initially deliberate for 2030.

The German automaker had mentioned in 2022 that it might want greater than 200 gigawatt-hours (GWh) of battery cell capability by the tip of the last decade, and deliberate to construct eight battery cell factories with companions all over the world. – world, together with 4 in Europe.

However with demand for electrical autos decrease than anticipated by many carmakers, Mercedes-Benz mentioned earlier this yr that it doesn’t anticipate gross sales of electrical autos, together with hybrids, to achieve 2030 2030, 5 years later than beforehand anticipated quantity.

The 200 GWh forecast was primarily based on the idea that by 2030, all of Mercedes-Benz’s annual gross sales – round two million autos – will probably be electrical, Chief Expertise Officer Markus Schaefer (CTO) mentioned on July 8 .

“Is 200 gigawatt hours nonetheless essential? It is a matter of time,” he mentioned.

The automaker signed a contract with CATL in 2022 to obtain battery cells from the Chinese language firm’s 100 GWh manufacturing unit that’s being in-built Hungary, however didn’t disclose the dimensions of the contract.

It’ll additionally obtain cells from a 40 GWh plant in France via the ACC three way partnership during which it has a 30% stake. Plans to construct two extra ACC vegetation in Germany and Italy had been shelved final month on account of low demand for electrical automobiles. Mercedes-Benz additionally has suppliers within the US and China.

“We’re comparatively versatile. We are going to think about the subsequent steps when there’s extra readability in regards to the demand,” Schaefer mentioned. Itemizing the relationships the automaker has with suppliers, he mentioned: “It is sufficient to cowl the subsequent step. “

Mercedes-Benz has not restricted investments to affect its product vary, and Schaefer mentioned it has not invested closely in inner combustion engine automobiles, apart from deliberate upgrades to make the automobiles a based on emission rules.