Mercedes-Benz has announced that it would go all-electric by the end of the decade, where market conditions allow. By shifting from electric-first to electric-only, it is accelerating toward an emissions-free and software-driven future.
By 2022, Mercedes-Benz will have battery electric vehicles (BEV) in all segments the company serves. From 2025 onwards, all newly launched vehicle architectures will be electric-only and customers will be able to choose an all-electric alternative for every model the company makes.
Mercedes-Benz intends to manage this accelerated transformation while sticking to its profitability targets.
“The EV shift is picking up speed – especially in the luxury segment, where Mercedes-Benz belongs. The tipping point is getting closer and we will be ready as markets switch to electric-only by the end of this decade,” said Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG.
“This step marks a profound reallocation of capital. By managing this faster transformation while safeguarding our profitability targets, we will ensure the enduring success of Mercedes-Benz. Thanks to our highly qualified and motivated workforce, I am convinced that we will be successful in this exciting new era.”
To facilitate this shift, Mercedes-Benz is unveiling a comprehensive plan which includes significantly accelerating R&D. In total, investments into battery electric vehicles between 2022 and 2030 will amount to over €40 billion. Accelerating and advancing the EV portfolio plan will bring forward the tipping point for EV adoption.
After reorganising its powertrain activities to put planning, development, purchasing and production under one roof, Mercedes-Benz will deepen the level of vertical integration in manufacturing and development, and insource electric drive technology. This step includes the acquisition of UK-based electric motor company YASA. With this deal, Mercedes-Benz gains access to unique axial flux motor technology and expertise to develop ultra-high performance motors. In-house electric motors, such as the eATS 2.0, are a key part of the strategy with a clear focus on efficiency and the overall cost of the entire system, including inverters and software.
China, the world’s largest new energy vehicle (NEV) market, which is home to hundreds of companies and suppliers specialised in EV components and software technologies, is expected to play a key role in accelerating the Mercedes-Benz electrification strategy.
Mercedes-Benz will need a battery capacity of more than 200 Gigawatt hours and plans to set up eight Gigafactories for producing cells together with its partners around the world. This is in addition to the already planned network of nine plants dedicated to building battery systems. These batteries will be highly standardised and suitable for use in more than 90% of all Mercedes-Benz cars and vans. It will work with partners like SilaNano to further increase energy density by using silicon- carbon composite in the anode. This will allow for unprecedented range and even shorter charging times.
Mercedes-Benz also said it was currently developing the Vision EQXX, an electric car with a real-world range of more than 1,000 kilometres, targeting a single-digit figure for Kwh per 100 kilometers (over 6 miles per Kwh) at normal highway driving speeds. A multi-disciplinary team, including experts from Mercedes- Benz’s F1 High Performance Powertrain division (HPP), is making rapid progress towards the project’s ambitious goals with world premiere in 2022.
