As part of its Ambition 2039 initiative, Mercedes-Benz wants to offer a CO2-neutral new-car fleet in less than 20 years. However, it says that the production of an all-electric vehicle is twice as CO2 intensive as that for an ICE (internal combustion engine) car, mainly because of the lithium-ion batteries.
Despite a higher energy demand in production, Mercedes-Benz says plug-in hybrids and electric vehicles offer a clear advantage in terms of CO2 emissions compared to conventional drives today when the entire life cycle of the vehicles is considered. Electric vehicles can make up for a large part of the initially higher CO2 emissions from the upstream value chain due to their emission-free driving. So, Mercedes-Benz plans to work with the global supplier network to reduce CO2 emissions in the EV production phase.
With the electric EQS luxury sedan coming next year, “we have already achieved important milestones in close cooperation with our partners—for example, by purchasing CO2 neutrally produced battery cells,” said Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG responsible for Daimler Group Research and Mercedes-Benz Cars COO. “We are consequently pursuing this path; when awarding contracts for our subsequent electric vehicle platform—Mercedes-Benz Modular Architecture (MMA) for compact and medium-sized cars—we are already applying CO2 as a key criterion for the first time consistently.”
Through the Ambition 2039 effort, the company’s supplier network has also recognized the sustainability signs of the times and are starting to embrace the transformation. Almost half of Mercedes-Benz AG’s 2000 or so suppliers have already signed an “Ambition Letter of Intent” committing to supplying the company with only CO2 neutral parts in the future. The companies account for more than half of the annual purchasing volume of the company.
Mercedes-Benz will focus on materials and components that are particularly CO2 intensive in manufacturing and processing such as battery cells, steel, and aluminum. These components account for about 80% of the CO2 emissions in the supply chain of a fully electric vehicle.
“We place an additional focus on particularly CO2-intensive components and materials such as battery cells,” said Gunnar Güthenke, Head of Procurement and Supplier Quality, Mercedes-Benz Cars. “We are also in the process of setting up a tracking system that will enable us to see how CO2 emissions are reduced over time.”
The company has already agreed on clear objectives with two strategic partners for battery cells. CATL (Contemporary Amperex Technology Co., Limited) and Farasis Energy (Ganzhou) Co., Ltd. have committed to supply battery cells produced using electricity from renewable sources such as hydropower, wind, and solar.
With the EQS luxury sedan coming in 2021, the goal is a WLTP range of more than 700 km (435 mi) and a doubling of the charging speed compared to current models. The car will be equipped with CATL battery cell modules, and Mercedes-Benz and the supplier are committed to engineer and produce quality- and performance-leading batteries with the most sustainable footprint possible. The sustainability partnership with Farasis Energy comprises the production of battery cells produced with electricity from renewable energies as well as recycling and the observance of human rights in the supply chain.
These efforts reduce the CO2 footprint of an entire battery by more than 30%. The rest of the supply chain will be included as a next step.
Mercedes-Benz AG’s own plants, including the global battery production network, will be CO2-neutral worldwide from 2022, making them role models for the supplier network. Suppliers will be incentivized to avoid and reduce emissions as a fundamental principle by being given higher level consideration for more high-value projects.
With its new strategy, Mercedes-Benz hopes to claim that it produces the world’s most desirable cars. The goal is a fully networked and completely CO2 neutral vehicle fleet. The company aims to have plug-in hybrids or all-electric vehicles make up more than 50% of its car sales by 2030.
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