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Daimler to cease Li-ion battery cell production at Li-Tec

Daimler subsidiary Li-Tec will cease production of Li-ion battery cells in December 2015. As quoted in Der Spiegel Daimler-manager Harald Kröger said that “Our cells are very good, but at current production figures far too expensive. We have realized that a car manufacturer does not have to produce the cells themselves.

Li-Tec will be retained as a research location; the majority of the 280 employees will be transferred to the Deutsche Accumotive—also a wholly owned Daimler subsidiary—which manufactures battery packs.

Accumotive is currently expanding its production capacity to build systems for the next generation of the electric smart among others. Cells are slated to come from LG Chem.

Earlier this year, Daimler had acquired all of the shares held by its joint venture partner Evonik in Li-Tec Battery GmbH (50.1%) and in Deutsche ACCUmotive GmbH & Co. KG (10%). The two companies originally established their strategic alliance on automotive Li-ion cells in December 2008.

Li-Tec Battery GmbH is based in Kamenz near Dresden and develops, produces and distributes large lithium-ion battery cells. The Li-Tec CERIO cells are the only mass-produced cells with Evonik’s ceramic SEPARION high performance separator and LITARION electrodes.