Mercedes Benz announced that it will deepen strategic cooperation with China’s power battery cell manufacturer Funeng technology, and merge into Funeng technology, holding about 3% of its shares. This is not only an important step for Daimler to realize the “vision 2039” of carbon neutral travel, but also a key step for Funeng technology to consolidate its position as the world’s leading power battery manufacturer and supplier.
The main contents of the strategic cooperation agreement between Mercedes Benz and Funeng technology include the development and industrialization of high-tech cell technology, and the promotion of cost competitiveness. The key technologies include the substantial increase of driving range by increasing energy density and shortening charging time. This agreement will guarantee the power battery cell supply of Mercedes Benz in the process of electrification strategy, while Funeng technology can ensure its planned capacity construction. “China is the world’s largest market for new energy vehicles and has huge potential,” said Hubertus troska, a member of Daimler’s board of directors and head of Greater China. We have carried out mutual trust and cooperation with some powerful Chinese partners, not only committed to the deepening of the localization process, but also to enhance our global competitiveness. By taking a stake in China’s power battery cell manufacturer for the first time, we will further tap the potential of cooperation with China’s high-tech partners to support our global promotion of electrification strategy. In the future, we will further strengthen our local R & D, production and procurement in China. “
Markus schfer, a member of Daimler’s board of directors responsible for Group R & D and a member of Mercedes Benz’s board of directors and chief operating officer, said: “we are very pleased to take a key step in implementing Mercedes Benz’s” electric first “strategy and further expand cooperation with Funeng technology. By expanding our business relationship at the strategic level, we are accelerating the electrification of our product lineup. Through this agreement, we will bring our professional experience to the field of power battery cell development. At the same time, we will also empower the new German factory of Funeng technology to promote the development and maturity of this key technology field in Germany. Both sides share a common vision and are committed to building a more sustainable world through carbon neutral travel. ““ Daimler Greater China’s strategic investment in Funeng’s IPO and the long-term supply partnership between the two sides demonstrate Funeng’s leading battery technology strength and the importance of its global role. ” “We look forward to further in-depth cooperation with Mercedes Benz to provide sustainable battery supply for Mercedes Benz products and support its electrification strategy,” said Dr. Wang Yu, chairman and President of Funeng technology Dr. Chen Xiaogang, a member of Funeng technology’s board of directors and head of strategy and capital, believes that Daimler’s investment in Greater China shows the global influence of Funeng technology’s IPO. With the help of Daimler’s strength as a leader in the global automotive industry, Funeng technology will accelerate the global expansion of product iteration, enterprise operation management and project investment. Mercedes Benz: full layout of “2039” a year ago, Mercedes Benz put forward “vision 2039”, which set the future direction of this luxury car brand – sustainable development and electric travel, opened the way to carbon neutral travel, covering all dimensions of the supply chain, production and operation, products and so on. “This is a comprehensive consideration for the entire automotive industry chain.” So said Kang LinSong, chairman of Daimler’s board and chairman of Mercedes Benz’s board.
“Vision 2039”, that is, by 2039, efforts will be made to achieve carbon neutrality of new passenger car product lineup: by 2030, electric vehicles (including pure electric and plug-in hybrid vehicles) will account for more than half of new passenger car sales, and by 2022, carbon neutrality of vehicle production will be realized in Europe. By 2022, the entire Mercedes Benz product lineup from smart brand to large SUV will be electrified, and electric travel will be the core business. The future model architecture will be developed from the beginning based on electric travel, and will have its corresponding electric platform. By 2039, Mercedes Benz will stop selling traditional internal combustion engine passenger cars. Mercedes Benz plans to launch more than 130 electric products, including 48 volt intelligent motor system models equipped with EQ boost and plug-in hybrid models equipped with EQ power, And pure electric vehicles driven by power cells or fuel cells.
Under the huge electric vehicle product planning, Mercedes Benz has taken the whole battery technology chain into consideration. At present, the clear research and development goals include significantly improving the driving range of future power batteries by increasing energy density, improving the mass production maturity of related technologies, and greatly reducing the charging time. In the future, the improvement of power battery energy efficiency will further improve the sustainability of electric vehicles, including reducing the use of rare materials, carbon neutralization production of cells, energy efficiency in use, recycling of batteries and recycling of raw materials. Mercedes Benz and its partners are promoting the industrialization of new technologies as soon as possible.
Daimler group plans to purchase more than 20 billion euro cells by 2030, and plans to invest more than 1 billion euro to build a global battery production network in China, Germany, the United States and other places. At present, Mercedes Benz’s global power battery production network includes nine factories in three continents and seven places, including No. 1 and No. 2 battery factories in Kamenz, Germany, turkheim battery factory, Beijing battery factory, China, Tuscaloosa battery factory, Thailand battery factory, and the newly added Polish battery factory in January this year. Mercedes Benz is investing more than 1 billion euros in these factories. At present, the power battery factory in China has been put into operation, and a number of battery factories in the United States and Europe are under construction.
The localization of power battery production is an important factor for the success of Mercedes Benz’s electrification strategy, and also the key to meet the demand of electric vehicles. Prior to this stake in Funeng technology, Mercedes Benz and Funeng technology have reached a partnership in the field of sustainable development in the summer of 2019. The first report card handed over by the two sides is to use renewable energy such as water, wind and solar energy to produce power battery cells. For example, the next generation of EQ models, including EQS pure electric luxury cars, will be partially equipped with power battery cells produced by carbon neutralization.
Mercedes Benz’s pure electric vehicle will launch a corresponding product offensive in the global market. Mercedes Benz EQC pure electric SUV, three smart EQ models and EQV 300 have been launched one after another, and the new generation pure electric EQS will be launched soon. In addition, Mercedes Benz pure electric trucks, pure electric light commercial vehicles and pure electric buses have achieved mass production. By the end of 2020, Mercedes Benz aims to launch 5 pure electric passenger vehicles and 20 plug-in hybrid vehicles on the market. Funeng: participate in global competition. On July 2, Funeng technology announced its IPO and listed on the science and technology innovation board, and disclosed that the list of strategic investors included Daimler Greater China Investment Co., Ltd., with a payment amount of 904.5 million yuan. Daimler Greater China Investment Co., Ltd. will participate as an important strategic investor in the IPO of science and technology innovation board to be completed by Funeng technology this month. This share purchase has yet to be approved by the regulatory authorities. According to the prospectus of Funeng technology, Funeng technology plans to issue no more than 214 million shares of common stock (excluding the number of shares issued with the over allotment option). After deducting the issuance and other expenses, Funeng technology plans to raise no more than 3.437 billion yuan, which is mainly used for the 8gwh annual output lithium-ion power battery project (Funeng Zhenjiang phase III project) and the supplementary working capital project.
Founded in 2009, Funeng technology focuses on the R & D, production and sales of lithium-ion power batteries and vehicle battery systems for new energy vehicles, and provides overall power battery solutions for vehicle enterprises. On the technical route, Funeng technology takes ternary chemical system and flexible power battery structure as the research and development and industrialization direction of power battery, and has realized the mass production of the first batch of ternary flexible power battery in China. Global soft power battery companies mainly include LG Chemical, SK innovation and AESC. In 2017, 2018 and 2019, the installed power battery capacity of Funeng technology was 0.99gwh, 1.9gwh and 1.21gwh respectively. At present, it has become one of the leading enterprises in the world. According to the prospectus released in September last year, Funeng technology has started mass production of 285wh / kg cell products with energy density. By the end of 2018, Funeng technology has provided products for more than 100000 new energy vehicles, ranking sixth in China and tenth in the world in terms of shipment volume in 2017; In 2018, it ranked fifth in China and ninth in the world. In the field of soft pack power battery, the product shipment and installed capacity ranked third in the world and first in China in 2017 and 2018 for two consecutive years.
The main domestic customers of Funeng technology include Great Wall group, BAIC group and GAC group. In September last year, Daimler won the purchase order of 10 billion batteries, which enabled Daimler, like Ningde times and BYD, to win the opportunity to participate in global competition.
With the increase of orders, Funeng technology started the capacity expansion plan. Since 2018, Zhenjiang phase I and Zhenjiang phase II projects have been launched successively. After the fund-raising is in place, phase III projects will be launched, with a total capacity of 24gwh. Previously, the capacity of phase III project of Funeng technology in Ganzhou, Jiangxi Province was 15gwh, and it is estimated that the domestic planned capacity will reach 39gwh by 2022. At the same time, Funeng technology also plans to establish production bases overseas to improve the industrial layout. Last year, Funeng technology officially launched the European production center project, opened an office in Stuttgart, Germany, and established farasis energy Europe. At present, Funeng technology is planning to build a production base in bitfield Wolfen in eastern Germany, which is expected to be completed by the end of 2022. The initial production capacity is 6gwh, and then it will be increased to 10gwh year by year, which can support 60000-80000 electric vehicles. Then another factory will be set up in the United States to follow Mercedes Benz’s strategy of “local production and local procurement”. After Volkswagen’s stake in GuoXuan high tech, Toyota’s joint venture with BYD and Tesla’s choice of Ningde era, the marriage between Mercedes Benz and Funeng technology is another deep binding between foreign automobile giants and Chinese power battery enterprises!
Editor in charge: PJ