Daimler And BAIC To Invest $735 Million In Chinese Battery Production

Daimler and Chinese joint venture partner BAIC Motor Corporation have strengthened their partnership with an agreement to invest 5 billion yuan ($735 million) in electric vehicle production in China.

Neither of the two companies have specified exactly where all of that money will be invested but Daimler did confirm that over 100 million euros worth will be funnelled to the construction of a new Chinese battery factory.

In a statement, member of the Board of Management of Daimler AG, responsible for Greater China, Hubertus Troska, said “We are investing in the world’s largest market for Battery Electric Vehicles. By 2025, the Chinese market will have a substantial share in sales of Mercedes-Benz electric vehicles. Therefore, local production will be key to the success of our EV portfolio, and crucial to flexibly serving local demand for electric vehicles.”

Adding to this, chairman of the BAIC Group Xu Heyi said “By confirming our joint commitment to the development of electric drive in China, and undertaking preparations to produce BEVs at BBAC, we are giving full play to the respective strengths of both sides. Together, we are laying the groundwork for our joint venture facility BBAC to become a future BEV production hub in China.”

The Chinese facility will be just the latest in Daimler’s 1 billion euro investment to establish itself as an industry leader in battery production.

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  • Infinite1

    As long the quality is good

  • rover10

    The clammer to build products in China may make fiscal sense, however, there are two faces to the host country. One is open for international trade, and the other is a nation who appears to want more global political and military clout. Can these two opposing expressions ever live in harmony? Currently, the US is frustrated with China in particular, its policy on North Korea and South China Sea’s man made islands. At times these issues are more than just words, and have been openly hostile. I just can’t equate between the business strategy and the political? Surely, at some point the two have to harmonise, as polarisation could prove problematic? In recent months many big international companies have made considerable commitments, to making products in China, so maybe, they know something we don’t?

    • SteersUright

      Companies are loyal to a blind philosophy of profit-first, politics and ethics later, if at all. Until corporations are publicly admonished by the press and their own governments for not being ethically, politically, and environmentally responsible, they will continue with their “cash above all else” methodology. Worst part is, most of these companies then take the profits they reap and reward them to the upper 1-2% within the organization, not even the tens of thousands that do the actual work. They will build in China even if child or slave labor is employed. They will invest in S. America, Africa, Russia, wherever they can smell a profit, despite the human rights policies of these nations. Its all wrong on so many levels. But I think Im becoming aware that the sheeple need to be cornered, starved, polluted on and truly suffer before they find the anger within them to protest these social wrongs on a mass scale.

      • rover10

        What you say is sobering, yet there is talk in Washington of trade sanctions against China as one of the instruments, in bringing them around to changing their foreign policy. How then would all those US owned corporations manufacturing in China respond? Possibly, in some circumstances, 90% of their output is based there? As you say, there is an ocean of difference between what National policy dictates, and the international strategy of multinational companies. Clearly, two universes do exist, yet there must come a time when the sand and grit of politics, must bring this machine’s future into question?

        • SteersUright

          The world will evolve when western government’s begin to put the welfare of their people ahead of their desire to please their largest lobbyists. Until then, its always going to be pay-to-play politics. I hope I see a change in my lifetime, at least in Europe and America, which despite their own major failings, seem to be leading the way to some extent.

  • SteersUright

    First article titled, “China Burning Through Fossil Fuels To Build Its EVs”. Article continues to state that the production of EV’s and the parts they need burns more fossil fuels than are saved by the EV’s produced.
    Next article titles, “Daimler And BAIC To Invest $735 Million In Chinese Battery Production”. So you’re going to help the Chinese set up more polluting factories that burn yet more fossil fuels? Shameful. Member nations of the new global warming coalition should begin to sue companies like Daimler or tax the hell out of them for the part they play in worsening the global pollution problem. They should pay to clean the rivers and air they pollute, or be dissuaded from making such reprehensible, short sided investments that ultimately hurt the planet. Or, at the very least, immediately release a statement showing that this new mega factory will be 100% powered by wind and solar, as will most of the lithium mining component.
    Do we really have to wait until we’re all wearing pollution masks or Miami becomes the first major city to sink to take air and water quality and Global Warming more seriously? You dont always get the chance to correct for your mistakes retroactively. Sometimes, once things are set in motion, it can actually be quite late, if not too late.

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