German car manufacturer Daimler has announced a partnership with China's BAIC Motor Corporation, pledging to provide $735 million investment into electric vehicle infrastructure in the region. Daimler (the company behind brands like Mercedes-Benz) has revealed a large chunk of that hefty sum will be spent on building a new Chinese battery factory under the joint venture Beijing Benz Automotive Co., Ltd.
While investing in China's electric vehicle infrastructure sounds like a noble move, it's not quite as altruistic as it may seem. In order to get around the aggressive import levies that stop manywestern brands from selling products in China, this joint venture was a necessity. A recent statement by Daimler management board member Hubertus Troska predicts that "By 2025, the Chinese market will have a substantial share in global sales of Mercedes-Benz electric vehicles." If so, the costly venture will most certainly have paid off.
The two companies have announced that the full $735 million will be invested in electric vehicles in China by 2020.