Daimler Subsidiary Li-Tec Will Cease Lithium-Ion Battery Production In December 2015

DEC 9 2014 BY MARK KANE 7

smart fortwo BRABUS electric drive

smart fortwo BRABUS electric drive

Earlier this year, Daimler acquired the Li-Tec battery joint venture, in which the majority stack was previously held by Evonik.

Now, it seems that Daimler, as a sole owner of Li-Tec, came to the same conclusion as Evonik and is not willing to invest in the company any longer as there is no chance to make a profit.

Li-Tec is scheduled to be closed down in December 2015, according to Der Spiegel.

Daimler-manager Harald Kröger stated:

“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.”

This must indicate that we’re roughly a year and a half away from seeing smart electric drive with batteries from a different manufacturer. LG Chem according to Der Spiegel.

Li-Tec will be fragmented:

“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.”

Li-Tec’s end is bad news for Evonik, which still was supplying ceramic SEPARION separators and LITARION electrodes, as there are no other mass-produced cells with those materials.

Source: Green Car Congress

Categories: Daimler, General

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7 Comments on "Daimler Subsidiary Li-Tec Will Cease Lithium-Ion Battery Production In December 2015"

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Spec9

Tesla is bravely going into difficult territory.

Ian

Kind of reminds you of all those urban legends about big car companies buying out inovative patents and hiding them from the public…but now its battery tech…no surprise.

QCO

Batteries are a thin margin business. It’s all about economies of scale and low costs. You have to go big or go home.

But in-house pack assembly does make sense because it is usually vehicle specific and there are opportunities for packaging optimization.

EVer

14,673 miles on my Smart

still get max range and havent had a single problem in a year and a half

and still turns heads and smokes cars!

Lad

Nothing more than MB cutting their loses, nothing more.

Jouni Valkonen

Finally some battery tech news that is not outright BS. This is how things mostly operate in real life. When some companies (such as Daimler) cannot keep up with the development of technology, they must shut down the factories and outsource the component. This is how things are working in real life.

It makes sense that LG chem will start producing wholesale batteries for the car market. That is where this industry is headed – that and rechargeables for the power-grid eg. Sony’s investment.