Daimler is buying over $20 billion in battery cells to support electric vehicle plans.

Daimler has announced that it is issuing over $20 billion worth of battery cell supply contracts to support its electric vehicle plans.

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, made the announcement on December 11th, stating:

“Our electric offensive continues to gain momentum. After investing billions of euros in the development of the electric fleet and the expansion of our global battery network, we are now taking the next step: With the purchase of battery cells for more than 20 billion euros, we are systematically pushing forward with the transformation into the electric future of our company. We plan a total of 130 electrified variants at Mercedes-Benz Cars by 2022. In addition, we will have electric vans, buses and trucks.”

The German automaker said that the 130 electrified variants will include hybrid, plug-in hybrids, and all-electric vehicles, it also confirmed that “the suppliers are already producing battery cells in Asia and Europe and are continuing to expand in Europe and additionally in the USA.”

Last month, Daimler announced it has doubled its workforce for battery pack production ahead of the Mercedes-Benz EQC launch.

It said it is using third-party battery cells to build those battery packs and it is now securing the contracts for those cells.

“All systems are go”, says Ola Källenius who has been responsible for Daimler Group Research and Mercedes-Benz Cars Development since the start of the year.