Daimler subsidiary Li-Tec will stop producing Li-ion battery cells in December, closing the only German factory currently producing cells for EVs.
â€œOur cells are very good, but at current production figures far too expensive,â€ Daimler Manager Harald KrÃ¶ger told Der Spiegel. â€œWe have realized that a car manufacturer does not have to produce the cells themselves.â€
Nissan seems to have recently reached a similar conclusion, saying that Korean battery-maker LG Chem could offer a better price-performance ratio than Nissanâ€™s homemade cells.
This doesnâ€™t mean Daimler is getting out of the battery business. Most of Li-Tecâ€™s 280 employees will be transferred to another subsidiary, Deutsche Accumotive, which manufactures battery packs. Accumotive is expanding production capacity to build packs for the smart ED and other Daimler plug-ins. The cells will be coming from â€“ you guessed it â€“ LG Chem.