Lithium is the new petroleum: Mercedes

GERMAN newspaper Frankfurter Allgemeine Zeitung (FAZ) has this week reported that Mercedes-Benz will focus its research and development efforts on “technically superior” electric motors over combustion engines powered by e-fuels.

The report, which quotes Mercedes-Benz CEO, Ola Kallenius, said the three-pointed-star brand will develop only electric vehicle architectures moving forward, saying the advantages electric motors offer in terms of power efficiency – let alone tailpipe CO2 emissions – could not be matched by e-fuel powered vehicles.

“We already said four years ago that our new vehicle fleet across the entire value chain should become CO2 neutral in balance sheet terms by 2039. That is our goal,” Mr Kallenius told FAZ.

“The electric car is still a young technology compared to the combustion engine (and) we still see great potential for progress. The electric drive will overtake the internal combustion engine in terms of performance before the end of this decade,” he predicted.”

Mr Kallenius said Mercedes-Benz will continue to develop ICE engines to meet stricter Euro 7 emissions standards but added that by 2026 it will have reduced investment in ICE development by “around 80 per cent”.

According to Automotive News Europe, China will be the last market where Mercedes-Benz will offer ICE drivetrains, and then only as a plug-in hybrid option developed in partnership with Geely.

Mr Kallenius also reaffirmed plans to continue Mercedes-Benz’s upmarket growth strategy, while simultaneously working to offer more sustainable entry-level models.

“The new technology we are developing for our luxury models to ensure ecological sustainability will also be used in other cars at some future point – and do not forget that our cars last longer, that is also a contribution to sustainability,” the FAZ report continued.

When asked by FAZ about the recent price cut Mercedes-Benz made to its flagship EQS in China, Mr Kallenius said the price was higher than in other markets to begin with.

“We were a bit too optimistic there. Now we have adjusted the price accordingly,” he stated.

Mr Kallenius said the global switch toward EVs is happening far quicker than expected and cautioned that charging infrastructure and electricity supplies needed significant investment in order to keep pace.

“The charging infrastructure must be expanded as quickly as possible, and we must do everything we can to promote the generation of green electricity,” he continued, saying manufacturers like Mercedes-Benz would “take care of the product”.

The Swedish-born chief executive told FAZ that he believed lithium is “the new petroleum” and said a political strategy is required for sourcing it and other materials necessary to the construction of EVs, battery packs and charging.

“Building capacity in lithium mining and processing is a gigantic industrial undertaking,” he emphasised.

“These raw materials will not all be mined in Europe. For that, we need trade agreements with Canada, South America, and Australia. That is where government support is needed.”

With Automotive News Europe and Frankfurter Allgemeine Zeitung.