Daimler has broken ground for an electric vehicle battery manufacturing plant in Alabama for its Mercedes-Benz subsidiary.
A ceremony marking the start of construction at Tuscaloosa, just seven miles from Mercedes existing vehicle production site, came just weeks after German auto firms indicated they could pull the plug on new investments in battery manufacturing in the US, if forced to pay increased tariffs under the Trump administration’s “national security” review.
The battery plant is part of a US$1 billion investment in the US that will cover two million square feet— twice the size of Mercedes’ nearby site. The US plant will form part of an eight-strong global battery production network including plants in Germany, China and Thailand.
The car giant is yet to reveal details of the overall planned output of the new plant, but Markus Schäfer, a member of the divisional board of Mercedes-Benz cars, production and supply chain, said the site would be “widely export orientated”— implying batteries could also be produced for use in EVs made by other companies.
More than $6bn has already been invested in Tuscaloosa since 1995. The additional $1bn “will help Mercedes-Benz Cars expand its industrial footprint in the region, most of which is slated for the electric initiative”, Daimler said.
