Photo courtesy of Daimler.

Photo courtesy of Daimler.

Daimler is constructing a battery factory in Beijing that will produce batteries for the local production of electric vehicles.

The production of the batteries at the factory is essential for meeting demands of producing electric vehicles flexibly and efficiently, according to the automaker. The factory is a project of Beijing Benz Automotive Co., Ltd. (BBAC), the Sino-German production joint venture between Daimler and BAIC Motor.

Daimler and BAIC will jointly invest over $7 billion in the production of battery-electric vehicles under the Mercedes-Benz brand and in battery localization at the site. This includes an investment for the battery production by the joint venture. Local production of battery-powered vehicles is scheduled to start by 2020.

The battery factory will be part of the global battery production network of Mercedes-Benz Cars, in which Daimler invests over $1 billion dollars. 

The cells for the new plant’s batteries will be from China.