The move signals Daimler’s push to electrifying its near-future lineup.
In a development that marks the electrification of its future lineup, on Tuesday, Daimler stated it would purchase battery cells worth at least $22.75 billion (20 billion euros) as it readies mass production of hybrid and electric vehicles.
“With the purchase of battery cells for more than 20 billion euros, we are systematically pushing forward with the transformation into the electric future of our company,” said Dieter Zetsche Chief Executive of Mercedes-Benz.
Daimler is Mercedes-Benz’s parent company.
By 2022, Mercedes-Benz Cars plans on offering 130 electric and hybrid vehicles. This will be in addition to its electric vans, trucks and buses lineup.
Daimler did not mention from which companies it would source the battery cells.
Incidentally, Daimler manufactures its own battery packs, which are made by Deutsche Accumotive in Kamenz, Germany, among other places. According to sources, Daimler could also source from suppliers including SK Innovation and LG Chem.