German automaker Daimler AG is strengthening its alliance with Chinese battery manufacturer Contemporary Amperex Technology Limited (CATL) to ensure the continuous supply of high-quality battery cells for its current and future new energy vehicles. The move comes as other global carmakers are now forging partnerships with top battery manufacturers to accelerate electrification plans.
Daimler AG, the company behind the Mercedes-Benz luxury car brand, announced on Wednesday that it has signed a new agreement with CATL for further battery orders. The company stated that it is counting on CATL to provide it with high-quality battery packs for its future vehicles. This includes the supply of newly developed next-generation battery cells that will give its vehicles a range of 700 kilometers per charge or more along with much faster recharging times.
In a published statement, Daimler stated that it will be combining its research and development expertise with CATL's own expertise in the development of new battery technologies. The partnership will be essential to Daimler's plans of accelerating its electrification by producing more fully-electric and plug-in hybrid models.
CATL's chairman and chief executive officer, Dr. Robin Zeng, mentioned in a separate statement that the company considers Daimler to be an important partner that will help drive its further business growth. He added that by working together and collaborating in enhancing battery and vehicle technologies, both companies will be able to provide end-users with highly reliable and competitive mobility solutions.
Under the agreement, CATL will be providing Daimler with entire battery systems and battery cells. This includes customized battery systems for Daimler's commercial Mercedes-Benz trucks and battery modules for its passenger cars. CATL will also be providing Daimler with its more advanced cell-to-pack (CTP) battery packs, which is a type of battery that doesn't utilize individual battery modules.
On top of supplying it with batteries, CATL has also agreed with Daimler to collaboratively develop new battery technologies. The aim of the partnership is to develop more energy-dense battery chemistries that will provide more power and less charging times. Both companies will also be working on developing new chemistries that will rely less on more expensive or hard to source materials such as cobalt.
Apart from supplying Daimler, CATL is also a major supplier to Tesla in China. The company's CTP battery technologies have proven to be much more efficient and cost-effective compared with what Tesla was previously using in its vehicles. Tesla's China-made Tesla Model 3 all sport battery packs supplied by CATL, while its models in the U.S. are supplied by Japan's Panasonic.
