Electric vehicle battery firm Contemporary Amperex Technology Ltd (CATL) has signed a deal to supply lithium-ion battery packs for German vehicle OEM Daimler’s electric trucks.
Starting in 2021, the China firm’s batteries will be installed in truck models under Daimler’s Mercedes-Benz and Freightliner brands.
The companies have not disclosed the volume of the supply agreement.
Daimler is set to reportedly invest €10 billion ($11 billion) in the next three years to electrify its vehicle portfolio. Last week it announced it would stop developing internal combustion engines to concentrate on EVs, with all models including an electric version by 2022.
CATL is said to be preparing to spend up to €1.8 billion ($1.9 billion) to build a lithium-ion battery plant in Germany, its first production site outside of China.
The facility in Erfurt, in the east-central state of Thüringen, is set to begin making batteries in 2021.
Agreements have already been reached for the factory to supply the likes of vehicle OEMs Volkswagen and BMW as well as Groupe PSA of France.
Daimler already has battery plants in Germany: two in Kamenz, and is in the process of building another factory in Stuttgart-Untertürkheim.
It also has battery manufacturing plants in Beijing (China), Bangkok (Thailand), Tuscaloosa (USA) and Jawor (Poland).
