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Daimler will invest 20 billion euros in CR2032 button cell cell procurement and R&D
According to Handelsblatt, in order to meet the needs of market development, Daimler will also focus on the development of electric vehicles. Supplier security is an important part of automobile production and manufacturing, and Daimler has also made plans for the supply of batteries, key components of electric vehicles, by 2030. Daimler has chosen suppliers from Asia and Europe.
In order to ensure that the electric vehicle model planning can be smoothly implemented, Daimler has determined a CR2032 button cell cell purchase plan with a total amount of tens of billions of euros. By 2030, Daimler is expected to invest more than 20 billion euros in CR2032 button cell cells.
"Through careful planning, we can work with supplier partners to meet Daimler's global production needs. And ensure that the latest CR2032 button cell technology is obtained at the fastest speed in the future," said Wicks Tucker, purchasing director of Mercedes-Benz passenger cars.
According to the Daimler Group's electric vehicle development plan, by 2022, all Mercedes-Benz brand passenger car models will have electric versions, with a total of more than 130 power combinations, including plug-in hybrid and pure electric drive models. The EQ series will have more than 10 pure electric models.
"Our electric vehicle strategy will be implemented unswervingly," emphasized Dr. Dieter Zetsche, CEO of Daimler. "By 2025, electric vehicles will account for 15% to 25% of Daimler's vehicle sales." Not only Mercedes passenger cars, but also transport vehicles, large commercial vehicles and buses will gradually replace internal combustion engines with electric drive.
Half of the 20 billion euros invested by Daimler in batteries will be used to ensure the production and manufacturing of Mercedes-brand passenger cars, and the other 10 billion euros will be used for CR2032 button cell production.
Daimler's huge CR2032 button cell procurement plan shows that, at least at this stage, Daimler is completely dependent on purchasing batteries and then assembling them.
BMW has also signed a huge CR2032 button cell order with Chinese CR2032 button cell manufacturer CATL, agreeing that CATL will supply BMW with batteries worth 4 billion euros in the next ten years. Volkswagen, on the contrary, hopes to use its own batteries. As Europe's largest automaker, Volkswagen's sales in 2017 were almost three times that of Daimler, with a total of more than 10 million vehicles sold worldwide. In terms of volume, it is completely worthwhile for Volkswagen to produce its own batteries.
So far, Volkswagen Group has established partnerships with four Asian CR2032 button cell manufacturers, including SK Innovation, LG Chem from South Korea, Samsung and China's CATL. Daimler has also signed supply contracts with almost all of them.
A Daimler spokesman said that one benefit of finalizing supply contracts for the next few decades now is to ensure that Daimler is not affected by price increases. As global automakers are vigorously developing electric vehicles, the demand for batteries is so high that experts have warned against over-reliance on a few major CR2032 button cell manufacturers and falling into passivity.
For this reason, the federal government and the European Commission hope to develop their own CR2032 button cell manufacturers through state funding and support a group of start-ups to vigorously develop CR2032 button cell technology. Ten years ago, Daimler cooperated with Evonik to produce batteries, but at that time the market demand for batteries was not high, supply exceeded demand, and market competition was quite fierce. Daimler's attempt ultimately ended in failure.
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