Daimler buys $23 billion of batteries for electric cars

SMM12, 12 / 12-Mercedes-Benz automaker said Tuesday that DAIGn.DE will buy more than 20 billion euros ($23 billion) worth of batteries by 2030 as it prepares to produce hybrid and electric vehicles on a large scale. The company is one of many German carmakers to expand large electric vehicles as European regulators crack down on toxic diesel emissions. With a large number of battery orders until 2030, we have set another important milestone for the electrification of electric vehicles in the future. "Wilko Stark, who is responsible for the procurement and supplier quality of Mercedes-Benz's board of directors, said in a statement. Daimler declined to say which suppliers would be awarded the contract. The company has signed battery supply agreements with South Korea's SK Innovation (096770.KS), LG Chem (051910.KS) and China Hyundai Amperex Technology (CATL) (300750.SZ) to launch 130 electric and hybrid cars.

Daimler says it is expanding its capabilities in battery research and next-generation batteries to reduce its dependence on expensive small metal minerals, such as cobalt, which come mainly from the Congo. But the economy and politics of the Democratic Republic of the Congo are not in a state of long-term stability.

Mercedes-Benz EQ electric cars, which will be launched in 2019, will use batteries containing 60 per cent nickel, 20 per cent manganese and 20 per cent cobalt, the company said. Mercedes-Benz's goal for future electric vehicles is to include batteries that use 80% nickel and contain only 10% manganese and 10% cobalt.

Daimler said, adding that it was also developing solid-state batteries. "our engineers are studying batteries that contain 90 per cent nickel and 5 per cent manganese and 5 per cent cobalt in order to further reduce the content of small metals".

Chinese manufacturers are using a composition called LFP, which has a low energy density but does not contain cobalt.

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