daimler ceo ola kaellenius
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Carsales Staff16 May 2019
NEWS

Mercedes-Benz to build electric motors in-house

Benz boss Kallenius is open to moving more EV component production in-house but battery cell production won't happen

Mercedes-Benz may make more of its electric-vehicle core components such as motors and gearboxes in house, but battery cell production is not on the agenda, says Mercedes-Benz and Daimler CEO-in-waiting, Ola Kallenius.

Kallenius, who on May 22 (2019) replaces Dieter Zetsche at the helm of the German giant, has said that internal production of key components for its existing and future ranges of electric vehicles will ramp up, but also says that the scale and production footprint required for battery cell production was not in the manufacturer’s roadmap.

Speaking at an Australian roundtable on the same day he delivered Ambition2039, Mercedes’ blueprint for the next 20 years, Kallenius played up his company’s expertise in battery and electric powertrain research and development but ruled out some areas key to EV production.

mercedes benz eqc 311 001

“On the [battery] R&D side, we are invested all the way down to the research level – all the way down to chemistry,” Kallenius told carsales.

“But for economy of scale reasons, battery cell production needs to be massive and there is a very dynamic competition going on here – both on the technical side and on the commercial side,” he explained.

Kallenius suggests that Mercedes-Benz can benefit from this competition.

“Here we take the approach, understand down to the lowest level of the chemistry what's going on [and] work with the best partner – which can be shifting over time, especially as a market arises on the production side.”

Kallenius pointed out that the battery assemblies for Mercedes’ EVs were being produced in-house. Case in point, the 652kg 80kWh unit that powers the just released Mercedes-Benz EQC 400 SUV.

“For the battery systems themselves, we’re building them. So, we have built up already large capabilities in Germany and we’re proliferating that around the world,” he stated.

Mercedes recently commissioned battery assembly production in China and will also do so in the USA.

Electric motors and the gearbox and differential assemblies Mercedes-Benz will use in its EQ models may eventually be localised. Currently, the company partners with ZF for these driveline components.

“On the electric motors, we have chosen for the first few generations, the first couple of generations, to source from the outside because we felt that was the best route.

“But we’re open-minded,” Kallenius commented.

“We’ll see what the future brings here.

“We also have full R&D capability to develop our electric axles,” he confirmed.

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