Envision AESC will supply power batteries for Mercedes-Benz's EQS and EQE, and plans to build a new plant in the United States.

(Image credit: Envision Group)

Chinese battery maker Envision AESC has entered into a strategic partnership with Mercedes-Benz to supply power batteries for the German carmaker's all-electric SUVs, the EQS and EQE, its controlling shareholder Envision Group said today.

Renewable energy company Envision Group holds an 80 percent stake in Envision AESC, while the remainder is controlled by Nissan Motor.

Envision AESC will be the main battery supplier to Mercedes-Benz to ensure capacity for the EQ series in the US in the coming years, said Markus Schaefer, a member of the German carmaker's board of directors and chief technology officer.

Envision AESC's zero-carbon solutions and power cell technology guarantee the sustainability and safety of Mercedes-Benz's battery supply chain while allowing it to offer its customers the most superior power cell technology, Schaefer said.

Envision AESC will build a new digital zero-carbon power battery plant in the US for mass production in 2025, its second battery plant in North America, according to a press release.

Mercedes-Benz is currently undergoing a difficult electrification transition and plans to produce the electric SUV EQS in the US starting in June and the crossover SUV EQE next October, according to previous information.

After these two models go into production, Mercedes expects to produce 6,000 electric vehicles per month.

Envision AESC currently has 10 production sites and multiple R&D and engineering centers in Japan, the US, the UK, China and France, and expects to have a global production capacity of more than 200 GWh by 2025.

South Korean market research firm SNE Research released data early last month showing that Envision AESC is the ninth-largest battery supplier in the world in 2021, with a 1.4 percent market share.

Chinese power battery maker to build new factory in France