Mercedes-Benz has outsourced manufacturing of battery cells via electricity produced from renewable resources. This decision is part of the carmaker’s sustainability agreement with Chinese firm Farasis Energy which uses electricity generated by water, wind, and sun to make lithium-ion battery cells.

A carbon-neutral production site to make battery cells for Mercedes-Benz Cars is being planned in Germany, followed by plants in the U.S. and China. The move to curtail fossil fuel-based energy in battery cell production is part of the firm’s “Ambition2039” policy, aimed at achieving 100 percent carbon-neutral production by 2039.

Ambition 2039

Mercedes-benz intends to reduce its impact on the environment as much as possible through decisions like ethical battery production.

“In the first step, the focus will be on steel, aluminium, and battery cells. These material groups, as well as the high-voltage battery, make up a major part of the carbon footprint in the supply chain of a purely electric vehicle.”

Some battery cells for next-generation EQ cars are already produced using electricity from renewable sources, and the partnership with Farasis is projected to save over 30 percent of the carbon footprint of future models’ entire battery by sourcing cells from carbon-neutral production facilities.

A company spokeswoman spoke to Automotive Logistics, saying, “In the first step, the focus will be on steel, aluminium, and battery cells. These material groups, as well as the high-voltage battery, make up a major part of the carbon footprint in the supply chain of a purely electric vehicle.”

The Farasis partnership is the first step towards the fulfilment of Ambitino2039. The agreement also stretches beyond renewables and includes development of innovative methods to recycle valuable components and content from lithium-ion batteries.

Markus Schäfer & Dr. Yu Wang CEO Farasis Energy (Ganzhou) Co., Ltd

Markus Schäfer, member of the board of management Daimler AG, responsible for corporate research & Mercedes-Benz Cars development (left) with Dr. Yu Wang, founder and CEO Farasis Energy (Ganzhou) Co., Ltd

The Farasis-Mercedes-Benz agreement also observes and protects human rights under Daimler’s Human Rights Respect System. Farasis maintains research and development centres in China, Germany, and the U.S. apart from domestic facilities like Ganzhou (Jiangxi province) and Zhenjiang (Jiangsu).