Farasis Energy

History

2020: Purchased Daimler 3% of Farasis Energy for $127 million

At the beginning of July, 2020 announced Daimler acquisition of a 3% share in the Chinese producer of the Farasis Energy storage batteries for $127 million. It is one more sign that the German carmaker is going to increase production of electric vehicles. After closing of the transaction Daimler will appoint in the supervisory board of Farasis of the chief operating officer of the Mercedes brand Markus Schäfer.

Daimler released the first modern Mercedes car with accumulator feeding, EQC, in 2019 and promised to provide five completely electric cars and 20 more new hybrid models by the end of 2020. At the same time the carmaker in many respects relied on the current agreement on deliveries with Farasis company which has two plants in China and builds new platforms in Germany and the USA.

Mercedes-Benz buys a share in the Chinese producer of accumulators for electric vehicles

Now, after the conclusion of the new transaction, Farasis guarantees development and delivery of the German company of the advanced accumulators well in advance of their mass production. In the long term the transaction also allows Daimler an opportunity without delays to bring electric vehicles to the market of China.

Purchasing a share in Farasis, we intend to use the potential of advanced technologies of our partners. All this will help us to implement plans for production of electric vehicles on a global scale, - the board member of Daimler responsible for China, Hubertus Troska noted.

The carmaker depends more and more on China where gets the most part of the profit and where it has joint ventures with car makers Geely and BAIC. Both Chinese partners also own shares in Daimler. It is expected that car sales in To Europe will be reduced by 24% in 2020, and the dependence of the automotive industry on China will grow even more, according to forecasts, there the automobile market will be reduced by only 10%.^[1]

Electric vehicles

Notes