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Mercedes-Benz enters into sustainability partnership with China-based battery manufacturer Farasis Energy

Farasis uses electricity produced from renewable energy sources such as hydropower, wind and solar energy in the production of the battery cells.

Mercedes-Benz enters into sustainability partnership with China-based battery manufacturer Farasis Energy
Mercedes-Benz enters into sustainability partnership with China-based battery manufacturer Farasis Energy

Mercedes-Benz has agreed on a sustainability partnership with Farasis Energy (Ganzhou) Co., Ltd. to source battery cells from carbon-neutral production. Farasis uses electricity produced from renewable energy sources such as hydropower, wind and solar energy in the production of the battery cells.

Mercedes-Benz is taking the next step towards ‘Ambition 2039’ climate-neutral mobility and pursues the realisation of the goal consistently together with its suppliers and partners. The partnership between the two manufacturers comprises the production of battery cells produced with electricity from renewable energies as well as the subject of recycling and the observance of human rights in the supply chain. 

Markus Schäfer, Member of the Daimler AG Board of Management responsible for Corporate Research and Mercedes-Benz Cars Development, said: “With Ambition 2039, we have set the course for sustainable mobility. In addition to the consistent electrification of our product portfolio, we also look at the supply chain to realise our long-term objective of climate neutrality: part of the battery cells for the next vehicle generation of our EQ product and technology brand are already to be produced using 100 % electricity from renewable energies. By sourcing batteries from carbon-neutral production, we are making another important contribution on the road to a carbon-neutral new passenger car fleet in twenty years. As first result of the sustainability partnership with an important supplier of lithium-ion batteries, we will save well over 30 % of the carbon footprint of future vehicle models’ entire battery by sourcing battery cells from carbon-neutral production.”

A prerequisite for a supply contract for battery cells with Mercedes-Benz Cars is consent to the disclosure of the entire supply chain. Together with its suppliers, Daimler is working intensively on creating transparency along the entire supply chain. To ensure responsible sourcing of cobalt, third-party audit company RCS Global was assigned as part of the aforementioned sustainability partnership to inspect the entire cobalt supply chain and in particular the smelters for observance of the OECD standards.