Daimler will buy electric truck battery modules from Chinese supplier CATL

Supply agreement covers Mercedes-Benz, Freightliner and Fuso models from 2021

The Freightliner Class 8 eCascadia in January 2019 in Las Vegas

The Daimler Trucks & Buses unit of Daimler AG (DDAIF) will buy lithium-ion battery technology for its Mercedes-Benz, Freightliner and Fuso commercial electric trucks from Chinese supplier Contemporary Amperex Technology (CATL).

The long-term supply agreement announced Wednesday, Sept. 18, covers Daimler’s global electric truck portfolio that will be sold commercially beginning in 2021. The Mercedes-Benz eActros, the Freightliner eCascadia, Freightliner eM2 and Mitsubishi Fuso eCanter are included. Daimler owns 89% of Fuso.

Daimler did not reveal the value or length of the supply agreement.

The heavy-duty eActros is in customer trials in Germany and Switzerland, achieving a range of around 200 kilometers (120 miles) on a charge. Electric trucks have no tailpipe emissions, which could offset expected carbon emissions taxes the German government is expected to levy in a climate protection plan.

Mercedes-Benz eActros

Daimler Trucks North America recently delivered its first eCascadia models to customers in California following delivery of an eM2 medium-duty straight truck to Penske Truck Leasing in December 2018.

About 150 light-duty Fuso eCanter trucks are in customer use in New York City, Tokyo, Berlin and other cities.

Pack development

Daimler is developing its own battery systems. Pack assembly will be done at its Mercedes-Benz plant in Mannheim, Germany and its Detroit plant in the U.S. The approach is consistent with other supply agreements, said Frank Reintjes, Daimler head of global powertrain, e-mobility and manufacturing engineering.

TCO counseling

Daimler formed its E-Mobility Group in 2018 to define the strategy for electric components and products across brands and segments. The group also consults with customers on making electric mobility economically feasible by focusing on the total cost of ownership (TCO) compared with diesel and other fuel alternatives.

CATL (Shenzhen: 300750) has battery manufacturing facilities in Fujian, Jiangsu and Qinghai provinces in China and Erfurt, Germany. 

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Alan Adler

Alan Adler is an award-winning journalist who worked for The Associated Press and the Detroit Free Press. He also spent two decades in domestic and international media relations and executive communications with General Motors.