Luxury automotive brand Mercedes-Benz announced on Wednesday that it has reached a strategic cooperation agreement with Envision AESC, a subsidiary of Envision Group. Under the arrangement, the firm will provide power battery products for Mercedes-Benz’s new pure electric SUV models EQS and EQE, and will help the brand accelerate its electric transformation. The two sides did not disclose the purchase volume of this cooperation.
Markus Schaefer, Chief Technology Officer at Mercedes-Benz Group AG, pointed out that “Envision AESC will be a major supplier securing capacity for the next generations of our Mercedes-EQ products built in the U.S. in the years to come.”
Electric transformation is the most important strategy of Mercedes-Benz throughout the next 10 years. Daimler AG Group, the parent company of Mercedes-Benz, plans to invest more than $46 billion in the development of a pure electric vehicle platform, battery factory and charging network from 2022 to 2030.
As of 2022, Mercedes-Benz has launched nine pure electric vehicles, which also means it has great demand for power batteries. The automaker plans to produce electric EQS models in the U.S. from June this year and EQE models in October next year. After the two models are put into production, it is estimated that 6,000 electric vehicles will be produced every month.
For Envision AESC, this cooperation with Mercedes-Benz has been reached after other deals with Renault in France, as well as Nissan, Honda and other leading Japanese carmakers, demonstrating the company’s layout across various international markets.
Envision AESC also announced that it will build a new digital zero-carbon power battery factory in the U.S., scheduled to begin production in 2025, which will be the company’s second battery factory in North America.
Envision AESC, a subsidiary of Envision Group, has 10 production bases and several R&D and engineering centers in Japan, the U.S., the United Kingdom, China and France. It has the manufacturing capability to match the R&D process of leading car companies at home and abroad. Its global production capacity is expected to exceed 200GWh by 2025.