German automaker Mercedes was about to launch a full-scale assault on the electric car market, but plans have been threatened by the Chinese-American battery maker Farasis, Business Insider reports.
The cooperation between the companies started in 2019, at that time Farasis was almost unknown on the market, but Mercedes believed in it. In 2020, the automaker bought the partner’s shares for 400 million euros.
However, the first samples of batteries delivered to Germany turned out to be so bad, there can be no talk of installing them in electric cars. One of the managers of Daimler (parent company Mercedes-Benz) described the test results, without specifying details, as “disastrous”.
The material suggests that Mercedes would prefer to end the partnership altogether rather than wait for battery improvements. And the quality problem is not the only one. The company was unable to obtain permission to build a factory. It was assumed that the production of new electric vehicles for the European market was supposed to begin in 2022, but the Chinese will definitely not be able to deliver on the planned schedule.
In Germany, it was believed that Farasis will produce at least half of the elements that Daimler needs in Europe. The company will probably have to look for a new supplier.
The current lineup will not be affected by the problem. EQC, EQA, EQV use batteries from the Chinese market leader CATL. The company assures that plans to release new EQS and EQE models this year also remain. However, to increase production, the company will have to urgently conclude new contracts, which is not so easy due to the boom in the market.
Earlier it was reported that the Chinese budget electric car Hong Guang Mini EV became the best-selling electric car in the country, overtaking the Tesla Model 3 twice. The reason for this trend was the difference in cost – 4.5 thousand dollars versus 39 thousand.