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

German automaker plans joint development for electric pivot

Mercedes-Benz aims to have electrics and plug-in hybrids make up at least half of the passenger vehicles it sells by 2030.    © Reuters

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.

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