Mercedes-Benz takes 3% stake in Chinese EV battery supplier

BEIJING -- Daimler subsidiary Mercedes-Benz announced Friday a strategic and capital tie-up with Chinese automotive battery maker Farasis Energy (Ganzhou) to secure a steady supply of batteries for the carmaker's shift toward electric vehicles.

The luxury automaker will acquire a 3% stake in Farasis in a deal estimated by Chinese media at 900 million yuan ($127 million). The two companies will jointly develop batteries for electric autos and plug-in hybrids. Farasis will supply batteries from production centers in China as well as a new carbon-neutral plant being built in eastern Germany.