Mercedes-Benz is accelerating its commitment to an all-electric future, and the state of Alabama is playing a pivotal role. The recent inauguration of a state-of-the-art battery plant in Bibb County marks a significant milestone for Mercedes-Benz in the United States, positioning Alabama as a crucial hub for electric vehicle production and export. This new facility, opening its doors just ahead of the production of all-electric Mercedes-EQ vehicles in the US, underscores the company’s dedication to sustainable luxury and innovation within its global network.
A Milestone in Electric Mobility for Mercedes-Benz in Alabama
As the world’s most valuable luxury automotive brand transitions towards a fully electric lineup, Mercedes-Benz is strategically expanding its electric vehicle production across three continents. The new battery factory in Alabama is a testament to the United States’ importance within the Mercedes-Benz global production strategy. For decades, Alabama has served as a vital export center for luxury SUVs, and this status is now solidified in the electric era. The Tuscaloosa plant is gearing up to manufacture the highly anticipated EQS SUV and EQE SUV, key models in Mercedes-Benz’s ambitious plan to produce all-electric vehicles at seven locations worldwide. The Bibb County battery plant will be the powerhouse providing the essential batteries for these new electric SUVs.
Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG, emphasized the significance of this new facility: “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.”
Tuscaloosa: A Legacy of Luxury SUV Production Goes Electric
The Mercedes-Benz plant in Tuscaloosa, Alabama, has been synonymous with the production of premium SUVs since 1997. For a quarter of a century, this plant has been a cornerstone of Mercedes-Benz’s global manufacturing network, producing iconic models bearing the three-pointed star. Now, this established facility is embracing the electric revolution with the introduction of the EQS SUV. As preparations for the production ramp-up in Tuscaloosa are underway, Mercedes-Benz has offered a first look into the spacious and technologically advanced interior of the EQS SUV, giving a glimpse into the future of electric luxury vehicles produced in Alabama.
Bibb County Battery Plant: Powering the Electric Revolution
Mercedes-Benz’s investment in Alabama extends beyond vehicle assembly to the very heart of electric vehicle technology: battery production. The new plant in Bibb County is dedicated to producing high-performance lithium-ion batteries for the EQS SUV and EQE SUV. This facility represents a substantial investment, with over a billion dollars allocated to its construction, along with logistics centers and upgrades to the Tuscaloosa production line for EV manufacturing. The Bibb County plant is equipped with a cutting-edge, fully digitized production system spanning approximately 984 feet and featuring over 70 workstations. This advanced setup allows for the precise assembly of complex battery systems, incorporating up to twelve cell modules and an EE compartment for intelligent power electronics integration. The plant is projected to create up to 600 new jobs in Bibb County, further boosting the local economy.
Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG, responsible for Production and Supply Chain Management, highlighted the strategic importance of the new battery 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.”
Investment and Economic Impact in Alabama
Mercedes-Benz’s commitment to Alabama is deep-rooted and long-standing. Since the 1990s, the company has invested over seven billion dollars in the state, transforming it into a major automotive manufacturing hub. Mercedes-Benz U.S. International (MBUSI) in Tuscaloosa currently employs around 4,500 people directly, and its operations support an estimated additional 11,000 jobs within the region through suppliers and service providers. The Tuscaloosa plant has a remarkable production history, with approximately four million vehicles rolling off its assembly lines since 1997. In 2021 alone, around 260,000 SUVs were produced. Significantly, roughly two-thirds of this annual production is exported, making MBUSI one of the largest automotive exporters in the United States, contributing significantly to the Alabama economy and international trade.
Governor Kay Ivey of Alabama acknowledged the long-term partnership and the impact of Mercedes-Benz in the state: “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.”
Envision AESC Partnership: Securing Battery Supply Chain
To ensure a robust and localized supply chain for its electric vehicle production in Alabama, Mercedes-Benz is partnering with Envision AESC, a leading global battery technology company. Envision AESC will supply the Mercedes-Benz battery plant in Bibb County with high-performance battery modules from a new US-based plant. This strategic partnership, commencing in the mid-2020s, is crucial for securing the necessary battery components for the ramp-up of Mercedes-EQ SUV production in Tuscaloosa and for future generations of electric vehicles manufactured in Alabama.
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 collaboration: “Envision AESC will be a major supplier securing capacity for the next generations of our Mercedes-EQ products built in the U.S. in the years to come. 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.”
Sustainability and Innovation at the Core
Sustainability is a guiding principle for Mercedes-Benz, and the new battery plant in Bibb County exemplifies this commitment. Production of the high-performance lithium-ion batteries for the EQS SUV and EQE SUV is CO2-neutral, minimizing the environmental footprint of the manufacturing process. The battery systems utilize advanced cell chemistry with a reduced cobalt content (around ten percent) and a nickel, cobalt, and manganese ratio of 8:1:1, further enhancing sustainability. The plant’s design incorporates numerous energy-efficient features, including solar thermal energy for water heating, rainwater capture and utilization, intelligent LED lighting and ventilation control, and environmentally friendly refrigerants in air conditioning systems. Forklifts within the facility are powered by hydrogen, eliminating diesel fuel consumption. Mercedes-Benz aims to power the entire Bibb County site with renewable energy sources from 2024 onwards, pending approval of planned solar energy projects. Beyond CO2-neutral production, Mercedes-Benz is actively pursuing battery recycling strategies, planning to build its own battery recycling plant in Germany and collaborating with high-tech partners in China and the United States to close the recyclable material loop. Furthermore, Mercedes-Benz is engaged in environmental conservation efforts in Alabama, through a five-year partnership with The Nature Conservancy to support the Working Woodlands site in northeast Alabama, promoting sustainable forestry and wildlife protection.
MO360 and the Future of Manufacturing
The Mercedes-Benz production system is characterized by its high flexibility and advanced digitalization, enabled by the MO360 digital production ecosystem. This approach allows for the seamless integration of Mercedes-EQ models into existing production lines. The “fullflex marriage” system exemplifies this, allowing for the efficient assembly of various drivetrain variants and vehicle bodies on a single line. MO360 enhances production efficiency through real-time data monitoring, process optimization, and quality improvements across the Mercedes-Benz global production network. The system also provides employees with customized information and work instructions in real-time, supporting their daily tasks and ensuring high standards of quality and safety, particularly when working with high-voltage technology.
Michael Goebel, Head of Production North America and President and CEO of Mercedes-Benz U.S. International, emphasized the team’s role in this transition: “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.”
Inside the EQS SUV: A Glimpse into Electric Luxury
The new EQS SUV, set to redefine the electric SUV segment, embodies the fusion of luxury, innovation, and sustainability. As the first all-electric luxury SUV from Mercedes-Benz and the third model based on the dedicated electric vehicle architecture, the EQS SUV offers a spacious and versatile interior, accommodating up to seven seats with an optional third row and electrically adjustable second row. The interior design mirrors the digital luxury found in the EQS sedan, featuring the optional MBUX Hyperscreen – a stunning 56-inch curved screen spanning nearly the entire width of the cabin. This seamless display integrates the instrument cluster, infotainment, and passenger display, creating a futuristic and immersive user experience. The EQS SUV, “Made in Alabama,” represents the pinnacle of electric luxury and technological innovation, poised to capture the hearts of discerning customers worldwide.
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About Envision AESC
Envision AESC is the pioneering battery technology manufacturing arm of Envision Group, a global green tech company with four other integrated divisions. Headquartered in Japan it has low-carbon battery plants in Japan, UK, US and China employs 2,500 people and has produced batteries for more than 600,000 EVs in 44 countries in the last decade. Envision AESC invests heavily in next-generation technology to drive innovation and works with strategic partners to develop capability and craftsmanship, quality design and technology to deliver exceptional battery performance, range, safety and cost for our customers. Find out more at www.envision-group.com
Mercedes-Benz AG at a glance
Mercedes Benz AG is responsible for the global business of Mercedes Benz Cars and Mercedes Benz Vans, with around 172,000 employees worldwide. Ola Källenius is Chairman of the Board of Management of Mercedes Benz AG. The company focuses on the development, production and sales of passenger cars, vans and vehicle-related services. Furthermore, the company aspires to be the leader in the fields of electric mobility and vehicle software. The product portfolio comprises the Mercedes Benz brand with the brands of Mercedes AMG, Mercedes Maybach, Mercedes EQ, G Class and the smart brand. The Mercedes me brand offers access to the digital services from Mercedes Benz. Mercedes Benz AG is one of the world’s largest manufacturers of luxury passenger cars. In 2021 it sold around 1.9 million passenger cars and nearly 386,200 vans. In its two business segments, Mercedes Benz AG is continually expanding its worldwide production network with around 35 production sites on four continents, while gearing itself to meet the requirements of electric mobility. At the same time, the company is constructing and extending its global battery production network on three continents. As sustainability is the guiding principle of the Mercedes Benz strategy and for the company itself, this means creating lasting value for all stakeholders: for customers, employees, investors, business partners and society as a whole. The basis for this is the sustainable business strategy of the Mercedes Benz Group. The company thus takes responsibility for the economic, ecological and social effects of its business activities and looks at the entire value chain.
