Daimler has begun the construction phase for a second battery factory at subsidiary Accumotive‘s  site in Kamenz, Germany.

With an investment of about EUR500m, Daimler says the site in Kamenz will be one of the biggest and most modern battery factories in Europe.

“By 2025, our passenger car product portfolio will contain more than ten fully electric vehicles. At the same time, we are continuously pushing our plug-in-hybrid offensive and the introduction of 48-volt-systems. Highly efficient battery systems are an important aspect of our strategy. They are an integral part of the vehicle architecture and not a ready-made product. The development, production and integration of those complex systems into our vehicles is one of our core competences,” said Thomas Weber, board member responsible for Mercedes cars R&D.

The new production facility is planned to start operations in the middle of 2018. The area of about 20 hectares is located in immediate proximity of the existing battery factory in Kamenz, about 50 kilometres from Dresden. With the construction of the second facility, the production and logistics area will be quadrupled to about 80,000 square meters. Accumotive will gradually increase the number of employees in the coming years. The workforce will double by the end of this decade.

In the future, Kamenz will produce lithium-ion batteries for all electrified vehicles of Mercedes-Benz and smart – including plug-in hybrids as well as fully electric vehicles. On top of that, Kamenz will produce batteries for stationary Mercedes-Benz energy storage units as well as 48-volt-systems. The 48-volt-system will gradually be integrated into different model ranges.

Accumotive is a wholly-owned subsidiary of Daimler AG. The company develops and produces highly complex drive batteries 6for hybrid and electric vehicles based on lithium-ion technology for passenger cars of the brands Mercedes-Benz and smart. The company is also responsible for producing energy storage units of Mercedes-Benz Energy GmbH.