Mercedes-Benz has officially inaugurated its state-of-the-art battery assembly plant in Bibb County, Alabama, marking a significant leap forward in the luxury automaker’s commitment to an all-electric future. This new facility, a cornerstone of the company’s global electrification strategy, will supply high-performance batteries for the Mercedes-EQ range of electric vehicles, starting with the highly anticipated EQS SUV and EQE SUV, both set to be produced at the nearby Tuscaloosa plant.
The opening of this U.S. battery plant underscores the strategic importance of the United States within Mercedes-Benz’s global production network. For 25 years, Alabama has served as a crucial export hub for Mercedes-Benz luxury SUVs, and this new investment solidifies the state’s role in the electric era. The Bibb County plant is poised to create up to 600 jobs, injecting significant economic vitality into the region and further establishing Mercedes-Benz as a major employer in the U.S.
Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG, emphasized the significance of this milestone: “The opening of our new battery plant in Alabama is a major milestone on our way to going all-electric. With our comprehensive approach including a local cell sourcing and recycling strategy, we underline the importance of the U.S., where Mercedes-Benz has been successful for decades. We’re proud to create new, future-proof jobs to build all-electric SUVs ‘Made in the USA’ at a plant that is such an established part of our production family since 25 years.”
The Tuscaloosa plant, a long-standing pillar of Mercedes-Benz production since 1997, is now transitioning into the electric age, beginning with the EQS SUV. Ahead of its official world premiere on April 19th, Mercedes-Benz has offered a sneak peek into the EQS SUV’s interior, showcasing a spacious, technologically advanced, and digitally integrated cabin.
Mercedes-Benz: A Quarter-Century Commitment to Alabama Manufacturing
Mercedes-Benz’s commitment to Alabama is deep-rooted, with over $7 billion invested in the state since the 1990s. A substantial $1 billion of this investment has been directed towards the new battery plant, logistics enhancements, and production line upgrades to facilitate electric vehicle manufacturing. Mercedes-Benz U.S. International (MBUSI) currently employs approximately 4,500 individuals and indirectly supports an estimated 11,000 additional jobs within the local supplier and service network. The Tuscaloosa plant has produced around four million vehicles since its inception, with an impressive 260,000 SUVs manufactured in 2021 alone. As a major exporter, roughly two-thirds of the plant’s annual output is shipped globally, making MBUSI one of the largest automotive exporters in the United States.
The Tuscaloosa plant’s highly adaptable production system is crucial for the evolving automotive landscape. It allows for the assembly of diverse models and powertrains on a single production line, enabling Mercedes-Benz to efficiently respond to shifts in consumer demand. Alongside existing models like the GLE, GLE Coupe, GLS, and Mercedes-Maybach GLS, the production line will now integrate electric vehicles, powered by batteries from the neighboring Bibb County plant.
Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, responsible for Production and Supply Chain Management, highlighted the global significance of the new plant: “The global Mercedes-Benz production network is digital, sustainable, efficient and flexible. Now the new battery plant, with its highly qualified and motivated U.S. workforce, will be a crucial driver of our electric vehicle roll-out plan. Team USA will play a major role in the continued success of Mercedes-Benz and we are proud that our new electric SUVs will also be built here in Alabama for global markets.”
Alabama Governor Kay Ivey also attended the opening ceremony, emphasizing the state’s pioneering role in automotive manufacturing: “With the production launch of the ground-breaking M-Class 25 years ago, Mercedes-Benz helped put our state on the cutting- edge of automotive manufacturing. Today, with the opening of this new battery plant, Alabama is helping Mercedes accelerate its production of industry leading electric vehicles. We’re proud to call Mercedes a partner, and we’re excited about the future that we are building together in Alabama.”
Bibb County: Joining Mercedes-Benz’s Global Battery Production Network
The Bibb County facility becomes an integral part of Mercedes-Benz’s expanding global battery production network, which spans factories across three continents. This network includes plants in Germany, China, Thailand, Poland, and other locations, all strategically positioned to supply batteries for local vehicle production and global export as needed. Mercedes-Benz is investing over one billion Euros in the development of this worldwide battery production infrastructure.
Production at the Bibb County plant is focused on CO2-neutral manufacturing of high-performance lithium-ion batteries for the EQS SUV and EQE SUV. The battery assembly line, stretching nearly 1,000 feet and featuring over 70 workstations, utilizes a fully digitized production process. This sophisticated system integrates numerous components, including up to twelve cell modules and the EE compartment, to ensure the intelligent management of power electronics. The plant is expected to generate up to 600 skilled jobs in Bibb County.
The battery systems produced in Bibb County incorporate a modular design, similar to those used in the EQS and EQE sedans, and utilize advanced cell chemistry with an 8:1:1 ratio of nickel, cobalt, and manganese. Notably, the cobalt content is reduced to approximately ten percent, enhancing sustainability alongside the CO2-neutral production processes.
Employee safety and training are paramount at the new plant. Mercedes-Benz has implemented comprehensive safety and training programs, including mandatory high-voltage safety courses for all personnel accessing the battery facility. These rigorous training initiatives, regularly repeated, underscore Mercedes-Benz’s commitment to operational and occupational safety in this high-tech environment.
Strategic Partnership for Battery Cell Supply and EV Ramp-Up
Mercedes-Benz is committed to transitioning to a fully electric vehicle lineup by the end of the decade, contingent on market conditions. To achieve this ambitious goal, the company, in collaboration with strategic partners, plans to establish eight cell factories globally, targeting a total production capacity of 200 Gigawatt hours by the end of the decade. Expanding partnerships with leading battery technology companies is a core element of this strategy.
To strengthen its supply chain localization, Mercedes-Benz is partnering with Envision AESC, a global leader in battery technology. Envision AESC will supply the Bibb County battery plant with high-performance battery modules from a new U.S. facility, with supplies commencing in the mid-2020s.
Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Development and Procurement, emphasized the importance of this partnership: “To be the leading luxury brand also in an all-electric future, Mercedes-Benz is accelerating the roll-out of its EQ models. Establishing a strong battery cell partner network in accordance with our global production strategy is a very important milestone on our way to CO 2- neutrality. With Envision AESC’s net-zero carbon solutions and battery technology, this new cooperation underlines our holistic approach regarding our sustainable value chain and allows us to secure supplies, to take advantage of economies of scale, and to provide our customers with superior battery technology.”
MO360: Digitalization for Production Efficiency and Flexibility
Mercedes-Benz leverages its MO360 digital production ecosystem to achieve exceptional flexibility and efficiency in integrating Mercedes-EQ models into existing production lines. This is exemplified by the “fullflex marriage” system, which utilizes modular stations to seamlessly connect different drivetrain variants with corresponding vehicle bodies on the same assembly line.
The MO360 platform significantly enhances production efficiency through comprehensive digitalization. Process and quality improvements are continuously monitored and implemented across Mercedes-Benz passenger car plants through this networked production system. MO360 also provides employees with real-time, customized information and work instructions, optimizing support for daily tasks. Specialized training, particularly in high-voltage technology, is a key component of this digitalized and efficient production environment.
Michael Goebel, Head of Production North America and President and CEO of Mercedes-Benz U.S. International, highlighted the team’s role in this global effort: “Our team here in Tuscaloosa plays a major role in the global success of Mercedes-Benz. We are proud that not only the new all-electric EQS SUV and EQE SUV are being built here in Alabama for markets worldwide, but also their high-performance batteries.”
The All-New EQS SUV: Luxury Redefined in the Electric Era
Set to debut on April 19th, the EQS SUV will be Mercedes-Benz’s first all-electric luxury SUV and the third model built on the company’s dedicated electric vehicle architecture. It promises to redefine the luxury SUV segment, blending the progressive design, refinement, and comfort of the EQS sedan with the spaciousness and versatility of a large SUV. The interior design emphasizes digitalization, most notably with the optional MBUX Hyperscreen, a 56-inch curved screen spanning almost the entire width of the cabin, integrating the instrument cluster, infotainment, and passenger display.
Sustainability at the Core of Battery Production
Sustainability is a guiding principle for the Bibb County battery plant, starting with the building’s energy-efficient design. Solar thermal energy is utilized for water heating, and rainwater harvesting conserves water resources. Other sustainable initiatives include intelligent LED lighting, efficient ventilation, environmentally friendly refrigerants in air conditioning systems, and hydrogen-powered forklifts.
Mercedes-Benz aims to power the Bibb County site entirely with renewable energy sources from 2024 onwards, pending approval of planned solar energy projects. In addition to sustainable design and value retention, Mercedes-Benz is focused on battery recycling, planning to establish its own battery recycling plant in Germany using hydrometallurgy and collaborating with high-tech partners in China and the U.S. to close the recyclable material loop.
Mercedes-Benz has also partnered with The Nature Conservancy, investing over $600,000 in the Working Woodlands site in northeast Alabama to support sustainable forestry and nature conservation, aligning with the company’s “Ambition 2039” goal of a CO2-neutral vehicle fleet by 2039.
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