Mercedes-Benz has announced that the company is getting ready to go all electric by the end of the decade as it is shifting from electric-first to electric-only.
By 2022, Mercedes-Benz will have battery electric vehicles in all segments the company serves. From 2025 onwards, all newly launched vehicle architectures will be electric-only, and customers will be able to choose an all-electric alternative for every model the company makes.
As WhichEV also recently reported, the strong commitment to an all-electric future is due to the fact that that the all-electric revolution is accelerating, and Mercedes wants to be at the very forefront of it.
“The EV shift is picking up speed – especially in the luxury segment, where Mercedes-Benz belongs,” Ola Källenius, CEO of Daimler AG and Mercedes-Benz AG said. “The tipping point is getting closer, and we will be ready as markets switch to electric-only by the end of this decade.”
To facilitate this shift, Mercedes-Benz is unveiling a comprehensive plan that includes significantly accelerating R&D. In total, investments into battery electric vehicles between 2022 and 2030 will amount to over €40 billion. Accelerating and advancing the EV portfolio plan will bring forward the tipping point for EV adoption.
In 2025 Mercedes-Benz will launch three electric-only architectures: MB.EA for all medium to large size passenger cars, AMG.EA, a dedicated performance electric vehicle platform for Mercedes-AMG customers, and VAN.EA for electric vans and Light Commercial Vehicles.
The powertrains are just the start as the company wants to put planning, development, purchasing and production under one roof. This step includes the acquisition of UK-based electric motor company YASA. With this deal, Mercedes-Benz gains access to unique axial flux motor technology and expertise to develop next generation ultra-high-performance motors. In-house electric motors are a key part of the strategy, with a clear focus on efficiency and the overall cost of the entire system, including inverters and software.
Mercedes has also highlighted its path on battery technology. The company will need a battery capacity of more than 200 Gigawatt hours and plans to set up eight Gigafactories for producing cells, together with its partners around the world.
This is in addition to the already planned network of nine plants dedicated to building battery systems. Next generation batteries will be highly standardized and suitable for use in more than 90% of all Mercedes-Benz cars and vans while being flexible enough to offer individual solutions to all customers.
Also, with the next battery generation, Mercedes-Benz will work with partners like SilaNano to further increase energy density by using silicon-carbon composite in the anode. This will allow for unprecedented range and even shorter charging times.
Mercedes-Benz is also working on setting new standards in charging: “Plug & Charge” will allow customers to plug-in, charge and unplug without extra steps needed for authentication and payment processing.
Plug & Charge will go live with the market launch of the EQS later this year. Mercedes me Charge is already one of the world’s largest charging networks and currently comprises more than 530,000 AC and DC charging points worldwide. Furthermore, Mercedes-Benz is working with Shell on expanding the charging network. Customers will get enhanced access to Shell’s Recharge network consisting of over 30.000 charge points by 2025 in Europe, China, and North America.
As soon as next year, eight Mercedes-Benz electric vehicles will be produced at seven locations on three continents. Furthermore, all passenger car and battery assembly sites run by Mercedes-Benz AG will switch to carbon neutral production by 2022.
Investments into combustion engines and plug-in hybrid technologies will drop by 80% between 2019 and 2026. On this basis, Mercedes-Benz projects company margins in a BEV world which are similar to those in the ICE era.
“Our main duty in this transformation is to convince customers to make the switch with compelling products. For Mercedes-Benz, the trailblazing EQS flagship is only the beginning of this new era,” Källenius said.